Several cargo ships in the Persian Gulf were attacked on Wednesday, sparking a new spike in oil prices and fresh questions about whether tankers will be able to travel through the Straits of Hormuz as President Trump’s war with Iran rages.
At least three ships were struck by unknown weapons, possibly Iranian drones, igniting fires and leaving at least three crew members missing from a Thai boat that had to be evacuated, authorities said.
The damaging attacks, which underline the threat Iran poses to oil tankers, touched off a new 3% rise in oil prices that will likely lead to higher U.S. gas prices.
Trump insisted in a new interview Wednesday that the war will be over soon because there is “practically nothing left to target” in Iran.
“Any time I want it to end, it will end,” Trump told Axios in a five-minute phone conversation. “They are paying for 47 years of death and destruction they caused. This is payback.”
Trump’s remarks seemed to put the U.S. at odds with Israel, which says it is planning to continue its campaign against Iran indefinitely.
“The operation will continue without any time limit, as long as required,” said Defense Minister Israel Katz.
Trump has warned Iran not to interfere with shipping in the Straits of Hormuz or the U.S. will hit it “twenty times harder” than before.
So far, Trump’s bluster has fallen on deaf ears.
Although Iran hasn’t formally closed the waterway, a Revolutionary Guard official warned Wednesday that it won’t allow “even a single liter of oil” to pass through the Strait of Hormuz for the benefit of the U.S., Israel, or their allies.
“Any vessel, or any oil cargo belonging to the United States, the Israeli regime, or their hostile partners will be considered a legitimate target,” the statement said.
The uncertainty has sent oil prices on a rollercoaster ride, jumping by about 30% from its pre-war levels in just a few days.
Crude skyrocketed again to more than $110 a barrel early Monday after Trump demanded Iran’s “unconditional surrender,” but plunged back to about $80 when he later claimed the war was “very complete, pretty much” and that he was “thinking about taking … over” the Straits of Hormuz.
American gas prices have risen by about 20% since the war started, raising political pressure on Trump and his Republican allies as the midterm elections loom.
With the threat higher than ever, insurers have imposed much higher costs on Gulf shippers, effectively making it economically infeasible for tankers to sail through the maritime choke point, which normally handles 20% of the world’s oil supply.
Trump unveiled a so-called political risk insurance plan last week in hopes of convincing shipping traffic to resume but details are murky and it’s unclear whether the plan will work.
So far the U.S. appears unwilling or unable to ensure safe passage by militarily escorting tankers through the Iranian gauntlet.
Secretary of Energy Chris Wright Tuesday posted and then deleted a tweet claiming the Navy was escorting ships. The White House admitted it has not escorted any tankers so far.
About 50 oil tankers a day normally sail through the Straits of Hormuz. That number has plunged to low single digits or zero since the war started Feb. 28 as tankers line up inside and outside waiting for a sign that it is safe to pass.
