Oil Gains 2% After UN Halts Strait of Hormuz Ship Escorts

The United Nations suspended its evacuation and escort operations in the Strait of Hormuz after a vessel came under fire in the Gulf of Oman. Iran issued fresh warnings over maritime routes, escalating a confrontation that pushed crude oil prices up roughly 2% on the session.

The UN's decision follows an attack on a vessel near Oman. The agency did not immediately identify the ship or confirm casualties. The suspension removes one layer of protection for tankers and bulk carriers moving through the narrow waterway, which handles about 20% of global oil supply. Iran has previously threatened to close the strait. Its latest warnings signal more direct confrontation, three Gulf-based maritime security officials said.

Brent crude futures climbed as traders priced in a higher probability of shipping delays. The 2% move recovers some ground lost earlier in the week. AIS ship-tracker data will be the next concrete test: if crude carriers begin rerouting around the Cape of Good Hope, journey times will lengthen by weeks and Atlantic Basin crude balances will tighten, two London-based oil traders said.

The strait at its narrowest is just 33 kilometers wide. Tankers have little room to avoid military zones. Past disruptions, including the 2019 tanker attacks off Fujairah, caused brief spikes but no sustained supply loss. The difference this time is the UN's withdrawal of escort capability, which raises the bar for commercial vessels to transit without naval protection.

Iranian officials said shipping routes would not be guaranteed safe. The UN's move suggests it judges the security situation too volatile to continue operations. The U.S. Fifth Fleet, based in Bahrain, could step in to fill the escort gap, a Pentagon official said Monday. No decision has been announced.