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Oil back to pre-war levels as Hormuz traffic rebounds, US tries to reassure Gulf allies - Headlines news and analysis from Global Banking & Finance Review
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Oil back to pre-war levels as Hormuz traffic rebounds, US tries to reassure Gulf allies

Published by Global Banking & Finance Review

Posted on June 25, 2026

5 min read

· Last updated: June 26, 2026

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UN halts escort of ships through Hormuz after vessel comes under attack

Escalating Tensions and Impact on Global Shipping

By Jonathan Saul, Gram Slattery and Tala Ramadan

LONDON/MANAMA/DUBAI, June 25 (Reuters) - The U.N. International Maritime Organization paused its operation to escort ships through the Strait of Hormuz on Thursday after a vessel reported an attack, reigniting concerns about whether a preliminary deal to end the Iran war will hold.

Details of the Attack and Immediate Responses

Taiwan's Evergreen Marine said on Friday its ship was hit close to Oman by an "unknown object" while on a route recommended by the British navy agency UKMTO. The agency said earlier a vessel had been struck by a projectile hours after Tehran warned vessels against taking routes it had not approved.

Two U.S. officials told Reuters that Iran had fired on the ship, while Iran's Persian Gulf Strait Authority, which Tehran established to manage requests for ships to travel through the strait, said vessels outside routes it has set will not be guaranteed safe passage.

"Consequences arising from passage through unauthorized routes shall be the responsibility of the owner, operator, and vessel commander," the Iranian authority said.

Evergreen said its Singapore-flagged Ever Lovely was hit on the starboard side and initial inspections showed damage to the bridge windows. "The crew, vessel and cargo are all safe," the company said in a stock exchange statement. "The vessel has safely departed the Strait of Hormuz." A security source said it was probably targeted by a drone.

There was no immediate comment from the U.S. government. U.S. President Donald Trump warned earlier this month that if Iran did not honour an agreement aimed at ending the war and reopening the strait the U.S. would probably go back to bombing the country.

International Maritime Organization's Response

ARAMCO STARTS LOADING AT RAS TANURA

The IMO was helping to get hundreds of stranded ships and thousands of seafarers out of the strait where they had been stranded for months since the start of the war on February 28.

It decided "to temporarily pause its implementation in order to reconfirm that the necessary safety guarantees continue to be in place for the ships on our evacuation list and all those in the region," IMO Secretary General Arsenio Dominguez said in a statement.

The IMO said the ship in the suspected attack was not part of its evacuation initiative, a voluntary option it launched on Tuesday to enable ships and their crew to sail out of the Gulf using two routes — one via Iranian waters and the other via Omani waters, with U.S. oversight.

Implications for Global Energy Markets

The Oman incident is likely to refocus attention on the extent of Iran's future control over the Strait of Hormuz which, before the conflict, handled a fifth of the world's daily oil and liquefied natural gas shipments.

Iran took effective control of the waterway when the war began, disrupting oil flows and rattling global energy markets, but oil prices dipped again on Friday and were headed for steep weekly losses as more stranded oil tankers exited the strait. 

South Korea's President Lee Jae Myung said on Friday three South Korean ships would leave the Strait of Hormuz over the weekend after the Oceans Ministry reported eight more South Korean vessels had exited.

There were also signs that Middle Eastern producers were pushing forward with plans to boost exports.

Shipping data from LSEG showed Saudi Aramco resumed oil loading at its Ras Tanura terminal in the Gulf on Friday after a near four-month halt.

Two Very Large Crude Carriers controlled by Saudi Arabia's shipping arm Bahri were seen loading crude at Ras Tanura, the world's biggest oil port, while another waited nearby, the data showed. Each VLCC is capable of loading 2 million barrels of oil.

Saudi Aramco could not be immediately reached for comment outside office hours.

Political Ramifications and Ongoing Negotiations

WAR CASTS SHADOW ON MIDTERMS

Before the incident, U.S. Secretary of State Marco Rubio — wrapping up a tour of the Gulf to reassure states about the interim pact — told reporters that if Iran threatened or blocked ships in the strait, "then we're going to have a problem." 

Iran, though, has signalled it would continue to assert control over the strait.

Iran's Revolutionary Guards said on Thursday that safe passage would only be possible through routes designated by Iran, adding that it would take action against vessels that failed to comply.

The Revolutionary Guards also ordered two Panama-flagged ships to change course on Thursday, British maritime security company Ambrey said.

Impact on U.S. Politics and International Relations

The war is weighing heavily on Trump ahead of November midterm elections that will determine control of Congress. Just one in four Americans believes the war was worth the cost, a Reuters/Ipsos poll showed.

Conflicting accounts have emerged over elements of the framework ceasefire deal, which has prompted criticism of Trump at home and abroad.

Disagreements persist over financial incentives for Iran, nuclear inspections, control of the Strait of Hormuz and Israel's parallel war in Lebanon.

Future Prospects for Peace and Stability

The deal sets up 60 days of talks to tackle thornier issues, including Iran's nuclear program.

(Reporting by Reuters bureaus; Writing by Ros Russell, Andrew Heavens, David Brunnstrom and Kate Mayberry; Editing by Gareth Jones, Jason Neely, Sanjeev Miglani and Lincoln Feast)

Key Takeaways

  • Oil benchmarks—Brent and WTI—fell sharply, hitting lows since February 27, just before the Iran war began, driven by renewed tanker traffic through the Strait of Hormuz. (marketscreener.com)
  • Energy Secretary Chris Wright confirmed that at least 20 million barrels exited the Strait in the prior 24 hours, nearing pre-war flow levels. (marketscreener.com)
  • Marco Rubio, on a Gulf diplomatic tour, promised allies U.S. support, reaffirmed freedom of navigation through the Strait, and rejected any attempt by Iran to impose tolls. (theguardian.com)

References

Frequently Asked Questions

Why have oil prices returned to pre-war levels?
Oil prices have dropped as shipping traffic through the Strait of Hormuz has recovered close to normal levels after disruptions caused by the conflict with Iran.
What actions has the US taken to reassure Gulf allies?
US Secretary of State Marco Rubio visited Gulf allies and emphasized ongoing support for regional security and opposition to Iranian-imposed shipping tolls.
How did Iran respond to new shipping routes in the Strait of Hormuz?
Iran's Revolutionary Guards warned vessels to follow designated Iranian routes and rejected new shipping lanes announced by Oman and coordinated with the UN.
What domestic challenges does President Trump face regarding the Iran war?
Trump faces criticism from Republicans and low public support for the war, with debates on the Iran deal and war powers ongoing in Congress.
What is the significance of the Strait of Hormuz for global oil markets?
The Strait of Hormuz is a critical chokepoint through which about one-fifth of the world's oil and LNG flows, making its security vital for global energy stability.

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