Three ships were attacked near the Strait of Hormuz

Three commercial oil tankers were attacked near the Strait of Hormuz in early March, killing one Indian crew member on the Marshall Islands-flagged MKD VYOM and injuring four seafarers on the Skylight, which carried 20 crew members who were evacuated. The attacks followed a reported US-Israel aerial assault that allegedly killed Iran's Supreme Leader, prompting Iranian military leadership to vow retaliation and declare the waters around the strait dangerous for civilian vessels. The crisis triggered immediate market disruptions as over 200 ships anchored outside the high-risk zone, insurance firms withdrew war-risk coverage, and Brent crude futures surged 8-10% to above $82 per barrel. The escalation threatens the Strait of Hormuz, which carries roughly 20% of the world's daily crude oil shipments, raising particular concerns for India, which imports the vast majority of its oil from West Asia and lost its first citizen in the US-Iran conflict.

Tanker attacks in the Strait of Hormuz and Gulf of Oman

• ▪An Indian crew member was killed when the MKD VYOM caught fire following the attack on 1 March
• ▪The Strait of Hormuz carries roughly 20% of the world's crude oil shipments daily
• ▪A bomb-laden drone boat struck the Marshall Islands-flagged oil tanker MKD VYOM in the Gulf of Oman near Muscat on 1 March

Global economic and energy market disruptions

• ▪The number of Very Large Crude Carriers and oil tankers idling in the Gulf of Oman and Arabian Sea reached figures not seen since late 2025
• ▪Brent crude futures jumped by 8-10% to multi-month highs

Perspective of Oil markets and traders

• ▪Oil traders characterized the 8-10% surge in Brent crude futures as a rational response to threats against the waterway carrying 20% of global crude shipments