Iran's attacks on commercial ships are turning off a lifeline for the global energy market -- a stream of tankers ferrying crude through the hazardous Strait of Hormuz.
The barrage of missiles and drones hit ships that specialize in short voyages in and out of the Persian Gulf known as "shuttle runs." Unlike traditional tanker voyages, which carry crude through the strait to refineries in China, South Korea and elsewhere, these ships make repeated short trips moving oil from Gulf terminals to ports just outside Hormuz, where it can be transferred to vessels headed to global markets.
What began as a trickle of oil in April expanded into a slick operation freeing massive amounts of oil and alleviating one of the worst shocks to energy markets in decades.
On Tuesday, the shuttle run operation was grinding to a halt after Iran struck three crude oil supertankers overnight, killing one sailor from India and injuring several other crew members. Two of the three tankers attacked overnight were part of the shuttle fleet, scotching the perception that the voyages were relatively safe.
Shipping executives and traders said the sailor's death had spooked those involved in the voyages including captains. Even sailing with protection from the U.S. military appears not to be safe, according to shuttle run shipowners.
"Suddenly we're in a situation where both the normal transits and the shuttle services look like they're under threat. It's quite a big deal for the oil market and the shipping market as well," said Richard Matthews, head of research at shipbroker E.A. Gibson.
Iran's attacks on the shuttle run ships strike at the heart of the U.S.-led operation to create an alternative southern route through the strait. Iran has asserted that it has total control over traffic in the Gulf and is willing to barrage ships that don't travel along its designated corridor.
If shipments through the strait don't pick up again soon, it will set off another scramble for other sources of crude among Asian and European refiners. The shipping slowdown is already feeding into higher oil prices. Brent crude futures rose again Tuesday, up more than 10% this week with the benchmark trading for almost $85 a barrel. That would be its highest closing price since mid-June.
The replugging of the Gulf comes at a precarious time for energy markets. Economies around the world haven't had time to rebuild depleted inventories since traffic accelerated last month. Meanwhile, Ukrainian drone attacks on Russian refineries have created a shortage of diesel in global markets.
The number of transits through Hormuz fell to 10 on Monday, according to ship-tracking firm Kpler. All but one vessel went through an Iranian-controlled route that swings near the country's coastline. Half were Iranian-flagged. By comparison, last week, an average of 30 vessels a day crossed the strait using a combination of routes.
The shuttle runs have been instrumental because, until recently, only a small number of shipowners were willing to risk sending their tankers through Hormuz. Sending those ships on repeat voyages with quick turnaround times maximized the amount of crude they could get out of Hormuz.
The tankers pick up oil from facilities inside the Gulf such as Abu Dhabi's Zirku Island and unload a few days later at ports on the other side of the strait such as Fujairah and Sohar. More cautious shipowners and traders can then safely load up the oil and sail it to refiners around the world.
Many of the ships have sailed with escorts from the U.S. Navy. American jet fighters have also intervened to protect tankers from approaching fastboats and other hazards.
So far in July, roughly 3.5 million barrels a day of crude oil managed to leave the Strait of Hormuz via these shuttle trips and ship-to-ship transfers, according to S&P Global Energy. That is more than half of the crude that is left the strait daily in July, according to Kpler.
One of the tankers struck Tuesday, Al Bahyah, is a very large crude carrier controlled by a subsidiary of Abu Dhabi National Oil Co. and capable of carrying two million barrels of crude. It had completed at least three shuttle runs by the time it was attacked, according to Kpler.
Mombasa B, the other tanker, had performed four shuttles, completing its most recent voyage in early July. The sailor who died was on this ship.
Adnoc Logistics and Services said it condemned the attack on civilian shipping and the innocent seafarers serving aboard its vessels.
The Emirati Defense Ministry said both tankers were sailing through a route hugging the coast of Oman when they were attacked. The route is supported by the U.S., unlike the alternative passage skirting near the Iranian coast, which is favored by Tehran.
Mombasa B is in a fleet of tankers controlled by the dominant company in the cottage industry of shuttle shippers, South Korea's Sinokor. Owned by elusive tycoon Ga-Hyun Chung, Sinokor bought dozens of tankers late last year with funding from the billionaire co-founder of container giant Mediterranean Shipping Co.
Chung put the tankers to work in the Gulf soon after the U.S. and Israel attacked Iran, working closely with Adnoc. He has emerged as one of the main corporate winners of the war.
Sinokor and MSC executives are concerned the Islamic Revolutionary Guard Corps will continue to attack their ships to try to shut down the shuttle market, said people familiar with the matter. At least two captains on their tankers have refused to go through the strait in recent days.
Greek tanker companies have also done shuttle runs in recent months, as has Navig8, which is controlled by Adnoc.
Shipowners say they also fear the Revolutionary Guard's use of cruise missiles risks doing more damage to ships than drones, and gives crews less time to respond. A crew member died after a strike on a containership off the coast of Oman over the weekend with a missile and drones.
"We are seeing significantly greater caution among shipowners and operators," said Yen Ling Song, an analyst at S&P Global Energy. While nearly 30 unloaded VLCCs, the largest type of tanker, are still heading toward the Middle East Gulf, more vessels could divert or delay voyages in the coming days if the fighting persists, she said.
There was also concern among shippers that the scope of Iran's attacks was widening away from the immediate vicinity of the strait after a vessel was targeted off Oman early Tuesday, according to its owner, London-based Stolt-Nielsen. It had not crossed the strait at all and was loaded with Omani chemicals headed to Malaysia, according to Kpler.
Write to Rebecca Feng at rebecca.feng@wsj.com, Costas Paris at costas.paris@wsj.com and Joe Wallace at joe.wallace@wsj.com
(END) Dow Jones Newswires
July 14, 2026 15:19 ET (19:19 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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