Iran confirmed on Wednesday that it had carried out attacks on 10 ships near the Strait of Hormuz in retaliation for the sinking of five Iranian oil tankers by the U.S. This exchange marked a significant escalation in shipping-related hostilities between the two sides since the beginning of the six-month-long conflict.
The Islamic Revolutionary Guard Corps (IRGC) of Iran stated that it had retaliated by launching ballistic missiles at a U.S. base near Al Azraq in eastern Jordan. Additionally, they reported firing on two U.S. vessels and eight oil tankers that were trying to navigate through a restricted area in the Strait of Hormuz.
These attacks in the strategic waterway led to a surge in oil prices, with the international Brent crude benchmark surpassing $100 per barrel for the first time since July. The ongoing conflict, coupled with escalating tensions between Saudi Arabia and the Iran-aligned Houthis in Yemen, has added further uncertainty to energy markets.
As a result of the turmoil, gasoline prices in the U.S. have soared, with the average price of a gallon of regular gas reaching $4.15 on Tuesday, marking a 26% increase from the previous year. Diesel prices also spiked to $5.90 per gallon, reflecting a 59% year-over-year surge.
The mounting tensions have had a ripple effect in Canada as well, with gas prices across the country witnessing hikes ranging from 25% to 40%. In response, the Canadian government has extended the gas tax holiday until the end of January to alleviate the burden on consumers.
In another development, Iran announced the establishment of a restricted maritime zone extending from Chabahar in Iran into parts of the Gulf of Oman and the Arabian Sea. This move comes in the wake of heightened military activities in the region, including the reported drone strike on an Iraqi oil tanker carrying two million barrels of fuel oil.
Despite the challenges posed by the conflict, the U.S. reiterated its commitment to ensuring the safe passage of tankers through the Strait of Hormuz. However, the effectiveness of these efforts has been called into question, with only a limited number of ships reported to have crossed the strait in the past 24 hours.
The situation remains tense, with Iran continuing to target U.S. military installations in the region. Recent missile strikes by Iran on a U.S. base in Jordan resulted in significant damage, although Jordan reported intercepting the majority of the missiles, with no casualties reported. The conflict shows no signs of abating, underscoring the broader implications of the ongoing hostilities in the region.