Strait of Hormuz Crisis Deepens as Iran Targets Ships, Oil Prices Surge

The Strait of Hormuz, a critical choke point for global energy supplies, is at the center of escalating tensions following Iranian attacks on ships and retaliatory strikes by the United States and Israel. The crisis, which began on February 28, 2026, is disrupting oil flows and driving up prices, sparking fears of a prolonged conflict with significant economic consequences.

Escalation of Attacks and Retaliation

Iran has intensified attacks on oil tankers and energy infrastructure in the Persian Gulf, declaring its intention to continue closing the Strait of Hormuz to pressure its adversaries . This follows joint military strikes by the U.S. And Israel on Iranian targets, including the killing of Iran’s supreme leader, Ali Khamenei . In response, Iran launched missile and drone attacks on US military bases, Israeli territory, and other Gulf states .

Recent reports indicate that three additional foreign ships were hit in the Persian Gulf, following previous attacks on Wednesday. The U.S. Military sank 16 Iranian minelaying ships near the Strait on Tuesday .

Oil Supply Disruption and Price Increases

The International Energy Agency (IEA) has warned that the conflict is causing “the most significant interruption” of global oil supplies in history, with Gulf countries reducing production by at least 10 million barrels per day due to the blockade of the Strait of Hormuz . Brent crude oil prices have risen to around $100 a barrel .

The new Iranian Supreme Leader, Mojtaba Khamenei, stated that the Strait of Hormuz will remain closed to exert pressure on Iran’s enemies .

Market and Economic Impact

European stock exchanges closed lower as attacks intensified, with the Ftse Mib in Milan closing down 0.7%. Paris fell 0.7%, Frankfurt remained stable, Amsterdam declined 0.2%, Madrid dropped 1.2%, and London decreased 0.4% . U.S. Stock markets are also experiencing declines, with Wall Street indices in the red.

Despite the economic uncertainty, U.S. Jobs data came in better than expected, with weekly jobless claims falling by 1,000. However, investors are increasingly doubtful about anticipated rate cuts by the Federal Reserve and the European Central Bank.

Shipping and Security Concerns

Traffic through the Strait of Hormuz has practically come to a standstill due to the escalating conflict . The U.S. Military has declined requests to escort tankers and other civilian ships through the strait, though officials suggest they may be able to provide escorts by the end of the month . Chubb Insurance Company is leading a U.S. Government-led program to provide insurance to ships navigating the region.

Casualties and Damage

As of March 12, 2026, the crisis has resulted in eight seafarers killed and at least four tankers damaged . One port worker was killed and two were injured in Bahrain .

Italian Market Highlights

On the Milanese stock market, Leonardo rallied (+5.7%) following positive earnings reports and plan updates. Tim (+2%) and Eni (+2.2%) also saw increases. However, banking stocks suffered losses, with MPS (-4.3%), Mediobanca (-3.9%), and Unicredit (-3.7%) declining. Webuild (-8.8%) and Erg (-8.6%) also experienced significant sales despite exceeding expectations. Ferragamo, however, rose (+10.9%) with a reduced loss in 2025.