Oil Prices Surge 6% as Iran Attacks UAE Port and Vessels in Strait of Hormuz

May 5, 2026

Oil prices surged nearly 6% on Monday to $114.44 per barrel for Brent crude following Iranian attacks on a UAE oil port and vessels in the Strait of Hormuz, marking the most serious escalation since a US-Iran ceasefire began in early April. The US military destroyed six Iranian boats in response and President Trump announced Project Freedom to guide commercial vessels through the strait, though only two US-flagged ships have crossed and no substantial resumption of maritime traffic has occurred. Up to 20,000 seafarers remain stranded on approximately 2,000 vessels in the strait amid safety concerns, with the International Maritime Organization calling the situation unprecedented. The conflict has created an estimated daily oil production shortfall of 14.5 million barrels, with Brent crude prices rising more than 50% since the war began in late February.

Military Escalation in the Strait of Hormuz

▪The United Arab Emirates reported coming under attack from Iranian missiles and drones.
▪US President Donald Trump announced that the United States military would guide commercial vessels through the Strait of Hormuz.

Impact on Global Oil Prices and Markets

▪Brent crude prices have risen more than 50 percent since the start of the war in late February.
▪Brent crude rose by nearly 6 percent on Monday to $114.44 a barrel.
▪Brent futures traded at $113.54 as of 02:00 GMT on Tuesday morning.
▪An estimated daily oil production shortfall of 14.5 million barrels exists amid the conflict.

Safety Concerns and Stranded Seafarers

▪International Transport Workers' Federation General Secretary Stephen Cotton stated that ships should not be asked to cross the Strait of Hormuz without a full guarantee of safety.
▪Stephen Cotton stated there was little clarity about how Project Freedom would provide safe evacuation or assurance from Iran that transit will be guaranteed.
▪Up to 20,000 seafarers remain stranded on some 2,000 vessels in the Strait of Hormuz according to the International Maritime Organization.

Perspective of International Transport Workers' Federation

▪International Transport Workers' Federation General Secretary Stephen Cotton stated there was little clarity about how Project Freedom would provide safe evacuation for seafarers.
▪International Transport Workers' Federation General Secretary Stephen Cotton stated there was little clarity about whether Iran would guarantee safe transit through the Strait of Hormuz.

Perspective of Oil market analysts

▪June Goh of Sparta in Singapore believes the oil market is pricing in the likelihood that the Strait of Hormuz will be shut beyond the timeline laid out by the Trump administration.
▪June Goh of Sparta in Singapore believes the oil market is pricing in the risk of more oil infrastructure damage from the Iran-UAE conflict.