Oil, Gas Prices Spike After Iran Attacks Ships in Strait of Hormuz
The tl;dr
Iranian attacks on commercial tankers in the Strait of Hormuz, including an LNG carrier and a Saudi-flagged crude tanker, sent oil and gas prices higher as traders braced for potential supply disruptions. Shell expects bumper Q2 trading profits from the energy market volatility caused by the tensions.
Markets in this story
30-day · delayedKey points
- Iranian forces reportedly attacked multiple commercial vessels in the Strait of Hormuz, a critical chokepoint where roughly one-third of the world's seaborne oil passes daily, raising immediate concerns about supply chain disruption.
- Oil futures rose sharply following the attacks, with both Brent and U.S. crude posting gains as traders repriced the risk of potential supply cuts or further escalation in the region.
- A Saudi-flagged crude tanker and an LNG (liquefied natural gas) carrier were among the targets, making the threat to energy infrastructure explicit rather than hypothetical.
- Shell announced it expects significantly higher trading profits in the second quarter from its oil and gas operations, attributing the windfall to the extreme price swings and volatility driven by Iran-related tensions.
- Despite the price spikes, some analysts noted that the upward pressure remains volatile and alert levels remain elevated, with uncertainty about whether attacks will continue or escalate.
By the numbers
Iranian attacks on commercial shipping in the Strait of Hormuz sent crude and natural gas prices climbing as markets reacted to the immediate threat of supply disruption. The targets included an LNG tanker and a Saudi-flagged crude carrier, making clear that the risk to energy infrastructure was real and immediate. Both Brent and U.S. crude futures climbed in response, though sources indicated that price moves remained volatile and market alert levels stayed elevated despite the initial spike.
The Strait of Hormuz is one of the world’s most critical energy transit routes, with roughly a third of globally traded seaborne oil flowing through its narrow passage between Iran and Oman. Any prolonged disruption could jolt already-fragile global energy supplies and add to inflation pressures. Markets had been bracing for regional tensions, but the actual attacks shifted concerns from hypothetical risk to demonstrated vulnerability.
Energy major Shell capitalized on the volatility, signaling that its Q2 trading profits would be significantly higher than those of the prior quarter thanks to the price swings across oil and LNG markets. The company’s oil and gas division, along with its chemicals and marketing units, benefited from the hedging and position adjustments traders made as tensions rose. The earnings windfall for Shell underscores how energy companies profit from price chaos, even as consumers and businesses bear the cost of higher fuel.
Energy prices affect global inflation, fuel costs, airline margins, and manufacturing competitiveness, so sudden supply shocks from a geopolitically sensitive region ripple through the entire economy.
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Topics
- oil prices
- strait of hormuz
- iran
- shell
- energy security
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