Ship attacked in Hormuz Strait as U.S.-Iran ceasefire expiry risks prolonged conflict

• The Strait of Hormuz, which handled about 20% of global crude oil and gas before the conflict, remains near a standstill with shipping severely disrupted since February
• Trump rejected ceasefire extension and threatened Oman for 'getting in the way' of U.S. efforts to reopen the strait, while Iran continues negotiations with Oman on alternative maritime routes
• Oil prices rose modestly following the ceasefire expiry, with Brent crude above $90 per barrel, though prices have stayed below $100 as global markets successfully rerouted supply

Summary

A cargo vessel was attacked by a projectile while transiting the Strait of Hormuz on Tuesday, causing engine room damage and one crew casualty, according to U.K. Maritime Trade Operations (UKMTO). The remaining crew received assistance from the Omani Coast Guard.

The attack follows escalating tensions after a 60-day U.S.-Iran ceasefire expired Monday without extension. Iranian military spokesperson Ebrahim Zolfaghari warned that vessels attempting passage through the strait will "find several beautiful holes in their hulls." President Trump ruled out extending the ceasefire, stating Tehran won't accept necessary terms to end the conflict.

Key Developments:

• The Strait of Hormuz, previously handling one-fifth of global crude oil and gas, remains largely closed with shipping near standstill since February
• Only 18 vessels transited Hormuz on Sunday, according to Kpler shiptracking data
• Bab el-Mandeb strait saw only 18 commodity vessel transits last week (down from 55 previously) due to Houthi naval blockade on Saudi Arabia declared mid-July
• Eurasia Group pushed back peace deal timeline from September to year-end, predicting "limited deal" allowing partial traffic recovery

Market Impact:

• Brent crude rose to $90.86/barrel (up from above $90 Monday)
• WTI futures climbed 0.25% to $84.70/barrel Tuesday (following 2.6% Monday gain)
• Oil prices remain below $100/barrel as global markets successfully route oil around Hormuz

Iranian Foreign Minister Abbas Araghchi confirmed ongoing negotiations with Oman for alternative maritime routes. Analysts warn any Hormuz traffic recovery will be partial amid sustained U.S.-Iran hostilities with heightened risks of renewed conflict disrupting shipping.