The United States on Monday began a fresh operation to reopen the key waterway. Shipping group Maersk later confirmed that its U.S.-flagged vehicle carrier, Alliance Fairfax, had successfully exited the Gulf through the strait under U.S. military escort, calming immediate concerns over supply disruptions. Crude oil price on May 5 Brent crude for July delivery slipped 68 cents, or 0.6%, to $113.76 a barrel after rising 5.8% on Monday. U.S. West Texas Intermediate (WTI) crude dropped $1.59, or 1.5%, to $104.83, following a 4.4% gain in the prior session. Tensions, however, remain elevated. Iran launched attacks in the Gulf on Monday in response to the U.S. move, as both sides vie for control of the Strait of Hormuz, a crucial route that typically carries around 20% of global oil and gas supply each day. Reports indicated that several commercial ships were hit in the area, while an important oil port in the United Arab Emirates caught fire following an Iranian strike. The U.S. effort to secure the waterway marks the most significant escalation since a ceasefire was declared four weeks ago. In a separate post on Truth Social, he said a South Korean cargo ship had come under fire and suggested that South Korea should consider joining the mission. In an interview with Fox News, U.S. President Donald Trump warned that Iran would be “blown off the face of the earth” if it attacked U.S. ships protecting commercial traffic. The U.S. push to reopen Hormuz comes after Iran largely shut the passage following the outbreak of war with the U.S. and Israel on February 28, triggering a major disruption to global energy supplies. On the outlook, Haitong Futures, as cited by Reuters, noted that the current ceasefire could be temporary. A lack of progress in U.S.-Iran talks by the end of April may lead to renewed escalation, potentially pushing oil prices higher. Macquarie expects crude to remain supported in the $85 to $90 range in the near term, gradually moving toward $110 as supply conditions improve. However, it cautioned that prolonged disruptions through April could drive Brent as high as $150 per barrel. Nuvama Institutional Equities echoed a similar view, stating that an extended shutdown of the Strait of Hormuz, which carries around 20 million barrels per day, could lift crude prices into the $110 to $150 range. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
The United States on Monday began a fresh operation to reopen the key waterway. Shipping group Maersk later confirmed that its U.S.-flagged vehicle carrier, Alliance Fairfax, had successfully exited the Gulf through the strait under U.S. military escort, calming immediate concern…
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Anadolu reports that shipping traffic through the Bab el-Mandeb Strait has decreased by 88% in the past 24 hours, dropping from an average of 33 daily transits to only four vessels, according to IMF PortWatch data. This reduction follows reports that Houthi forces have advanced to key coastal locations, including Mokha and Mayun Island, coinciding with a 91% decline in oil and chemical tanker passage.
Satellite imagery shows extensive damage to a key Saudi Arabian oil pipeline, a development that has reportedly disrupted operations. The assessment is based on a machine-translated headline from an Arabic-language source, so the specific extent of the impact remains unverified.
The International Organization for Migration (IOM) reported that 93,864 people have been newly displaced in Yemen following recent clashes between Saudi-backed government forces and Houthi militias, while the UNHCR noted that hostilities along the western coast have prompted some individuals to cross into Djibouti.
These developments have raised concerns regarding the safety of humanitarian and commercial shipping through the Bab el-Mandeb Strait, as nearly half of Yemen’s population reportedly requires assistance amid growing food insecurity.
The Japanese Shipowners' Association reportedly estimates that Saudi oil deliveries to Asia could take approximately 100 days round trip if the Bab el-Mandeb Strait is closed, a significant increase from the current 40-day route via the Strait of Hormuz.
This potential disruption, which Asashi notes would raise transportation costs, is described in the source material as following the current blockade of the Strait of Hormuz, an event the article attributes to a US-Iran conflict ongoing since February 28.