US strikes Iran for 13th night as Houthi tanker attacks jolt oil markets

US forces struck Iran for a 13th straight night as Houthi rebels attacked two Saudi oil tankers in the Red Sea. The escalation has rattled major shipping lanes, pushed oil prices higher and intensified calls for diplomacy.

In Short

• Brent crude rose over 6 per cent to about USD 100
• The Houthis said they hit two Saudi tankers in the Red Sea
• Bab el-Mandeb disruptions now threaten a quarter of global container traffic

The US military said on Thursday it was carrying out its 13th straight night of strikes on Iran as the conflict widened across key shipping lanes, while Yemen's Iran-backed Houthi rebels said they had attacked two Saudi oil tankers in the Red Sea. The developments added to fears over energy supplies, with Brent crude rising more than 6 per cent to about USD 100 a barrel, its highest level since May.

The latest flare-up comes as Iran and the US intensify their confrontation over the Strait of Hormuz, while the Houthis threatened another major trade route at Bab el-Mandeb. US President Donald Trump warned of "major military punishment" if the Houthis continue attacking ships, and the UN chief cautioned that the region was being pulled "into an ever-widening circle of confrontation".

US Central Command said its latest strikes were meant to "further degrade Iran's ability to threaten civilian mariners and commercial vessels transiting regional waters" as Washington tries to regain control of the Strait of Hormuz and restore shipping flow. Iran has shut the strait, through which a fifth of the world's oil and gas moved before the war, prompting a search for alternative routes.

Trump said on social media that if the Houthis attack again, "the US will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves". He also said money from sanctioned Iranian funds held by the US would be used to pay for damage to ships and cargo, writing that "any and all damages done to Ships, Cargo, or anything related thereto, will be paid for by Iranian Money that the United States has in its possession, and controls". He said that would be "the fair and equitable thing to do", though he did not say what legal mechanism would be used.

In the Red Sea, the Houthis' SABA news agency said the rebels struck the tankers Encelia and Layla, causing fires on both vessels. There were no reports of casualties. The attack was the group's first reported strike on a vessel since it announced a blockade of Saudi-linked shipping through the Bab el-Mandeb Strait earlier this week, saying it was in retaliation for Saudi Arabia's blockade on Yemen and a recent attack on the airport in Sanaa.

The state-run Saudi Press Agency reported that the Encelia caught fire overnight in the Red Sea, but did not mention the Layla. The United Kingdom Maritime Trade Operations Center said it had received a report that a tanker had been hit by "an unknown projectile" about 130 kilometres southwest of Al Shuqaiq in Saudi Arabia. Bab el-Mandeb, at the southern tip of the Arabian Peninsula, links the Red Sea with the Gulf of Aden and carries around 12 per cent of world trade, including a fourth of global container traffic. Lloyd's List Intelligence said the Houthi threat was a "double whammy" for oil shipments because it also put at risk exports from Saudi Arabia's Yanbu port, where Riyadh has diverted millions of barrels a day through an overland pipeline as the war has disrupted the Gulf route. Lloyd's said the threat "raises questions on the viability of this route".

Iran has said it has the right to manage traffic through the Strait of Hormuz and could charge fees there. Before the war, the strait was open and toll-free. Tehran has attacked ships using a route monitored by US forces and intended to stay outside Iranian control. In response, the US widened its strikes across Iran and restored a naval blockade of Iranian ports. US Central Command said 12 commercial vessels had been redirected and one disabled since the blockade resumed nine days ago.

The rhetoric between the two sides also sharpened. Iranian Foreign Minister Abbas Araghchi said Tehran would follow an "eye for an eye" policy over US strikes on its infrastructure. US Secretary of State Marco Rubio replied that Trump's policy was "a head for an eye" and said, "The price will continue to get higher every single night until they come to their senses." Iran's health ministry said 55 people had been killed and 629 wounded since renewed US airstrikes began on June 27. Iranian state media said US missiles struck areas near Ahvaz, Ramshir and Andimeshk in western Iran, and that two people were killed in Shalamcheh on the Iraqi border.

The conflict also spilled across the wider region. Iran has responded to US strikes by targeting energy infrastructure and desalination plants that provide drinking water in neighbouring Gulf countries. Jordan said it intercepted three missiles early on Thursday and that a fourth landed in an empty area, while six drones were intercepted the previous night. Sirens sounded in Bahrain, where authorities asked people to remain calm and seek shelter. Kuwait said drones struck its border crossing with Iraq, causing damage but no casualties, in what may have been a response to a US strike on the Iran-Iraq border crossing.

Diplomatic efforts continued alongside the fighting. Iraqi Prime Minister Ali al-Zaidi was in Tehran on Thursday to call for peace and dialogue, and his office said he had promised not to allow Iraqi territory to be used for attacks on Iran. He had met Trump earlier this month in Washington. An Arab diplomat, speaking on condition of anonymity, said Gulf states were growing more pessimistic about finding a way out, though countries such as Pakistan and Turkey were still pushing for de-escalation. Addressing the UN Security Council, Secretary-General Antonio Guterres said the region was being pulled "into an ever-widening circle of confrontation" and added, "Diplomacy is the only way forward," while calling for Pakistan's mediation efforts to be strengthened.

In the US, opinion polls have shown the war is unpopular, and that was reflected in the narrow passage of a House resolution on Thursday seeking to halt the conflict, although the measure remained largely symbolic. With US strikes continuing, Iran holding firm in the Strait of Hormuz and the Houthis opening pressure on the Red Sea route, the confrontation has deepened across the region's main shipping and energy corridors.

With PTI Inputs

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