Hormuz Strait Crisis: US Launches Retaliatory Strikes, Iran Shuts Down Global Oil Route

Update July 12, 2026, Jakarta

Tensions in the Middle East have reached a peak this weekend. Iran has officially shut down the Strait of Hormuz until an unspecified deadline and launched an attack on a Cyprus-flagged container ship, GFS Galaxy, which triggered swift retaliatory strikes from the United States on Saturday night.

Series of Attacks and US Military Response

The incident began with actions by Iran’s Islamic Revolutionary Guard Corps (IRGC), which fired warning shots and stopped the GFS Galaxy over allegations that it used an unauthorized route in Omani waters. The attack resulted in one crew member missing and severe damage to the ship’s engine room, leading to a fire.

In response, the US Central Command (CENTCOM), at the direction of President Donald Trump, launched airstrikes on multiple targets in Iran. Explosions were reported to have been heard in several southern coastal cities in Iran, including Bandar Abbas, Bushehr, and Qeshm Island, home to major energy centers and strategic military bases. This is the third wave of attacks carried out by the US in the past week as part of a cycle of tit-for-tat violence.

Escalation: Strait of Hormuz Shutdown & New Threats

Not long after the strikes, the IRGC announced a total closure of the Strait of Hormuz until further notice and until the end of America’s intervention in the region. The move revives fears of disruptions to global energy supplies, given that about one-fifth of the world’s oil trade typically passes through this vital route.

Iran also threatened it would attack new enemy bases in the region if any further military action is taken against them. Early reports indicate that Iran has launched retaliatory strikes targeting US facilities in Bahrain and Qatar, along with missile alerts heard in the United Arab Emirates.

Market Impact and Oil

The energy market reacted quickly to the escalation. Brent crude oil futures were trading around $76 per barrel, up about 5% from pre-war levels, and global crude prices jumped by more than 3% in over-the-counter trading.

Although oil prices briefly fell slightly due to hopes that the US would ensure the route would not be closed for long, volatility is expected to continue once the official market opens on Monday. Shipping data shows tanker traffic has dropped drastically, with only 22 ships willing to transit last Thursday, compared with an average of more than 130 ships per day before the war.

Diplomatic Failure and Impasse

The escalation comes after a series of failed diplomatic efforts. Before the strikes, Iran’s Foreign Minister Abbas Araghchi met with Omani officials to discuss a safe passage through the strait, but no public commitments were made. The US itself issued an ultimatum to Iran to publicly acknowledge that the strait was open and to stop the attacks, but the ultimatum was ignored.

Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, even swore revenge for the killing of his father and predecessor, signaling that the path to peace is still far away.

With the closure of the Strait of Hormuz and continued military action, the world is now on the brink of a deeper economic and geopolitical crisis.
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