US forces have conducted airstrikes on Iran for the tenth consecutive night.
Iran launched an attack on an oil tanker in the Strait of Hormuz early Tuesday, while Yemen's Houthi rebels announced an immediate maritime blockade against Saudi Arabia.
Energy consultancy Rystad Energy has warned that international oil prices could surge significantly.
On July 19, 2026, a shipyard in Iran's Hormozgan province was damaged in a US airstrike. Iranian officials stated that over the past ten days, US forces have struck 95 targets across 12 cities in the country.
Late Monday, the US launched a new round of airstrikes on Iran, coinciding with threats from the Iran-backed Houthi rebels in Yemen to blockade Saudi maritime shipping, potentially opening a new front in the Middle East conflict.
Multiple sources indicate that regional mediators have presented a ten-day ceasefire proposal to the US and Iran, which could help put a previously signed memorandum of understanding back on track. Currently, both sides continue to engage in retaliatory strikes.
The US Central Command issued a statement overnight, confirming that airstrikes were conducted against Iran at 9 p.m. Eastern Time on Monday.
"US forces struck Iranian military command centers, maritime warfare facilities, missile and drone launch sites, and air defense systems, aiming to degrade Iran's ability to continue harassing commercial vessels in the Strait of Hormuz," the US Central Command stated in its announcement.
The statement added that this strategic chokepoint remains open for commercial traffic. Since early May, US forces have escorted approximately 900 commercial vessels carrying a total of 450 million barrels of crude oil through the strait.
Early Tuesday, Iran attacked an oil tanker in the Strait of Hormuz, forcing the crew to abandon ship. This move by Iran is seen as an effort to tighten its control over this vital global oil artery, through which about 20% of the world's seaborne crude oil passes.
The Houthi rebels in Yemen announced an immediate maritime blockade against Saudi Arabia on Monday, a move that could severely impact crude oil supplies from the Middle East.
During the US-Iran conflict, the Houthis have repeatedly threatened to close the Bab el-Mandeb Strait. This waterway connects the Red Sea to the Gulf of Aden and is a critical global shipping chokepoint.
Official Houthi media released a statement accusing Saudi Arabia of imposing an "aggressive siege" on them. Last week, the Houthis claimed that the Saudi-led coalition bombed Sana'a International Airport, sharply escalating tensions.
The Saudi-led coalition in Yemen responded that it would retaliate militarily against the Houthi maritime blockade, calling the threat a "blatant violation of international law."
Proposed Ten-Day Ceasefire Faces Significant Hurdles
Oil prices spiked briefly following the Houthi blockade announcement but later experienced sharp volatility. Energy market investors are closely watching whether diplomatic efforts can achieve a breakthrough.
The international benchmark Brent crude for September delivery was last quoted at $90.20 per barrel, up 1.1%, erasing earlier losses. US West Texas Intermediate crude for August delivery rose 1.1% to $84.13 per barrel.
Strategists at ING noted that the mediators' proposal for a ten-day ceasefire offers hope for de-escalation in US-Iran tensions.
"However, negotiations will not be easy," ING analysts Warren Patterson and Ewa Manthey stated in a research report on Tuesday. "The differences between the US and Iran are deep-seated. President Trump previously stated that retaliation would follow if any US military personnel were killed in an attack."
On Monday, Trump posted on the social platform Truth Social: "If Iran causes the death of any US soldier, Iran will pay a price many times over!" He added that this directive had been issued to commanders at all levels.
Rising Risks to Saudi Crude Exports
Jorge León, Head of Geopolitical Analysis at Rystad Energy, stated that current transit through the Strait of Hormuz is nearly halted. The Houthi blockade threat puts Saudi Arabia's daily crude exports of 2.5 million barrels at risk of disruption.
"With the core Gulf maritime export routes largely blocked, global oil markets must rely heavily on Saudi Arabia's East-West Crude Pipeline and Red Sea export terminals to maintain crude shipments," León wrote in a research note on Monday.
The Saudi East-West Crude Pipeline, also known as the Petroline, spans approximately 750 miles across the country, connecting the Abqaiq oil fields on the eastern Persian Gulf coast to the Yanbu export port on the Red Sea.
"If shipping through the Bab el-Mandeb Strait is interrupted, not only will Saudi crude exports be hindered, but this remaining alternative route, which could compensate for the sharp reduction in Strait of Hormuz traffic, will also be paralyzed," León said.
"If ceasefire talks fail, the Strait of Hormuz remains largely closed, and Houthi attacks on Red Sea shipping escalate, the risk of a sharp and significant spike in crude oil prices will increase dramatically."
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