Iran fires on at least two ships near Oman after re-closing Strait of Hormuz

Two IRGC gunboats approached a tanker about 20 nautical miles northeast of the Gulf country around 1 p.m. local time — and opened fire unprovoked, the tanker’s master reported.

The Iranian Revolutionary Guard Corps fired on an Indian-flagged tanker, approximately 20 nautical miles northeast of Oman, around 1 p.m. local time. The tanker's master reported that two IRGC gunboats approached and opened fire unprovoked. This incident occurred shortly before Tehran declared the Strait of Hormuz was once again closed. The tanker was reportedly carrying a cargo of crude oil, valued at around $10 million.

This attack could trigger an oil price spike, potentially increasing gas prices for consumers. If the Strait of Hormuz remains closed, oil tankers will have to take a longer route, increasing transportation costs and leading to higher prices at the pump. For instance, a 10% increase in oil prices could lead to a 5% increase in gas prices. This would affect the daily commute of millions of people.

The Strait of Hormuz is a critical waterway, with around 20% of the world's oil passing through it. Iran has previously threatened to close the strait in response to economic sanctions. In 2019, Iran seized a British-flagged tanker, leading to a significant increase in oil prices. Insiders know that Iran's actions are often a response to economic pressure, and this latest incident is likely a continuation of that pattern.

The next few days will be crucial in determining the impact of this incident on global oil prices. The International Maritime Organization is set to meet on April 15 to discuss the situation. A surprising detail is that China, a major importer of Iranian oil, has been quietly increasing its imports from other countries, potentially reducing its reliance on Iranian oil and limiting the impact of any price spike.