Hormuz Stays Open as Iran–US Strikes Lift Oil Prices Amid Gulf Tensions

Shipping through the Strait of Hormuz remains open despite Iranian claims that it has shut the key transit route for oil and natural gas to traffic.

"Hormuz is open to all vessels seeking to lawfully transit the international waterway," US Central Command said on Sunday. "Iran does not control the strait. Traffic is flowing."

Commercial traffic through the strait has continued at reduced levels, the Joint Maritime Information Center (JMIC) said. Vessels have moved through the southern Omani corridor and the northern Iranian-controlled route. 

The latest Iran–US military exchanges have intensified regional instability, prompting fresh concerns over maritime security and global energy flows. Oil prices rose as traders reacted to escalating Gulf tensions and the risk of further disruption around the Strait of Hormuz.

US-assisted commercial transits continued despite the elevated threat environment, according to JMIC. The maritime security threat level in the strait remains "SEVERE," it said. 

"US forces are positioned and prepared to ensure that freedom of navigation remains available despite unwarranted Iranian aggression, harassment, threats, and arbitrary declarations," Centcom said. 

Iranian forces struck a Cyprus-flagged container ship, Centcom said early Sunday. The attack caused "significant engine room damage," and a civilian crew member was missing, it said.

The strike quickly triggered another US response. 

US Targets 140 Sites

The US launched a third wave of attacks against Iran on Saturday. US forces hit approximately 140 Iranian military targets with precision munitions, Centcom said. 

Iran has "again failed" to demonstrate its commitment to the interim peace agreement, Centcom said. The US has struck more than 300 targets during three days of military operations.

In response, Iranian forces lashed out at neighboring Gulf countries.

Iran’s military carried out retaliatory operations against US military facilities in several countries, including Jordan, Kuwait, Bahrain, and Oman, Iran’s semi-official Fars News Agency said. 

The attacks were in response to the "US onslaught on several cities and ports in Southern Iran." 

Iran Attacks Gulf Neighbors

Qatar intercepted incoming missiles, Qatar News Agency reported, citing the country’s military.  The strikes wounded three people, including a child, due to falling shrapnel from the interception of Iranian attacks, the news service reported. 

Meanwhile, Iranian missiles and drones hit civilian targets in Bahrain, the General Command of the Bahrain Defense Force said. The island kingdom in the Persian Gulf is home to the US Navy’s 5th Fleet. 

Kuwait’s military also said it was intercepting incoming fire. Drones struck sites in northeastern Oman, in an area that sits on the Strait of Hormuz, the Omani state news agency said. 

West Texas Intermediate (WTI) and Brent crude oil benchmarks rose slightly on Hyperliquid due to the tensions. WTI rose to $73, with its 24-hour volume and open interest rising to $113 million and $222 million, respectively. Brent rose to $78, with a trading volume of $63 million.

Major Sticking Point

The widening escalation has derailed diplomacy. 

The tit-for-tat military strikes over the past week have all but ended negotiations between Washington and Tehran to end hostilities that started on February 28. 

Iran rejected on Saturday restarting talks with the US unless the Trump administration "first retreats from its current positions."

Iranian authorities want the "implementation of the understandings" already reached with the US, Fars News Agency reported on Saturday, citing an informed source it didn’t identify. Those include shipping through the Strait of Hormuz in "accordance with arrangements sought by Iran."

About a fifth of all traded oil and natural gas passed through the strait before the war began. Iran’s grip on it during the war led to a global energy crisis. Oil prices have sharply dropped since wartime highs of $120 a barrel. 

Conflicting Demands

Shipping through the strait has become the major obstacle between Washington and Tehran. 

The Trump administration wants Iran to declare the waterway open, stop attacking vessels, and return to pre-war maritime norms. Tehran insists on keeping control over traffic through the strait as key strategic leverage.

Iranian officials reportedly told Reuters that giving up this control would amount to “surrender.” 

"There are major negotiating gaps between Iran and the US on the Strait of Hormuz," the Institute for the Study of War wrote. "The US has demanded that Iran restore maritime arrangements to their pre-war status quo. Iranian officials have consistently rejected any return to the pre-war system and view control over the strait as essential strategic leverage."