Strait of Hormuz crisis deepens as oil prices surge, UAE urges calm

A strike on a cargo vessel killed at least two people near the Bab al-Mandeb Strait off the coast of southern Yemen, British maritime security company Vanguard reported Tuesday, in the latest incident in the contested waterway.

"Two crew members, one Pakistani and one Indonesian national, were killed, while four others, comprising three Pakistani and one Indonesian national, were injured," the agency added.

"The Yemeni Navy subsequently deployed to assist the vessel and came under fire, resulting in one additional casualty."

The UK Maritime Trade Operations (UKMTO) says it has been informed of an incident off the coast of Al Mokha, Yemen, where a cargo vessel in the southern Red Sea was reportedly hit by an unknown projectile, resulting in casualties.

Authorities are investigating the incident. Vessels in the area have been advised to transit with caution and report any suspicious activity to UKMTO.

An Israeli double-tap strike on southern Lebanon wounded two people on Tuesday and damaged an ambulance, the Lebanese health ministry said, condemning the "continued targeting" of rescuers.

The incident is the latest Israeli strike despite an ongoing truce in the war between Israel and Iran-backed Hezbollah.

Lebanon's state-run National News Agency said the strike targeted a vehicle in the southern city of Nabatieh, with the health ministry reported two wounded.

The ministry said the Israeli military struck again when rescuers from the Risala Scouts Association, linked to the Hezbollah-allied Amal movement, came to the scene, damaging the ambulance.

The UK Maritime Trade Operations (UKMTO) agency said on Tuesday it had received a report of an incident involving a container ship and military forces in the Gulf of Oman. In an advisory issued at 0715 UTC, UKMTO placed the incident near Gwadar, Pakistan, and advised vessels transiting the area to stay updated on the latest maritime security information and remain aware of the evolving situation. Authorities are aware of the incident, and relevant investigations are ongoing, the agency added.

Oil prices extended a strong rally Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year.

Crude has surged around 10 percent over the past week, with the United States and Iran appearing no closer to a deal on the crucial waterway despite upbeat comments from the White House earlier in the month.

In the latest blow, Donald Trump said Monday he would seek conflict compensation from Iran as part of any peace negotiations, citing attacks and killings stretching back decades allegedly backed or perpetrated by Tehran.

The US president's announcement was a direct response to Tehran's demand for US war reparations as a precondition to any resolution of the crisis.

The region must move beyond its prolonged state of “no war, no peace”, towards sustainable stability founded on international law, peaceful coexistence and respect for sovereignty, Dr Anwar Mohammed Gargash, Diplomatic Adviser to the UAE President, said.

In a post on X, Gargash said clarity over the region’s future direction was essential for its stability and the future of its people. “The region cannot remain indefinitely in a state of neither war nor peace; its stability and the future of its people require clarity of vision and direction,” Gargash said.

“At the same time, the next phase cannot be built on fragile foundations or arrangements detached from international law, the principles of peaceful coexistence, respect for sovereignty and the logic of peace. The goal is to move towards sustainable stability governed by clear and shared rules," the Diplomatic Adviser added.

Bahraini Minister of Foreign Affairs Dr. Abdullatif bin Rashid Al Zayani discussed efforts to maintain regional security and stability during a telephone call on Monday with Egyptian Minister of Foreign Affairs Badr Abdelatty.

According to the Bahrain News Agency, the two ministers reviewed regional developments, the protection of maritime navigation in the Strait of Hormuz and Bab al-Mandab, and current challenges facing the region.

They emphasised advancing de-escalation efforts, promoting regional peace, and strengthening joint Arab cooperation.

The discussion also touched on continuing bilateral consultation and coordination within international forums alongside other issues of mutual concern.

Oil prices extended hefty gains Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year.

Crude has surged around 10 per cent over the past week, with the United States and Iran appearing no closer to a deal on the crucial waterway despite upbeat comments from the White House earlier in the month.

In the latest blow, US President Donald Trump said on Monday he would seek conflict compensation from Iran as part of any peace negotiations, citing attacks and killings stretching back decades allegedly backed or perpetrated by Tehran.

The announcement was a direct response to Tehran's demand for US war reparations as a precondition to any resolution of the crisis.

Trump's remarks came a day after he said he was "low-keying" his approach to the conflict, suggesting he was prepared to let economic pressure mount in place of further military strikes.

Oman said it was working to contain an oil spill off its southern coast after a tanker ran aground in June inside a protected marine area, triggering calls for action by environmentalists. The ship had been stranded for weeks near al-Qibliyyah island after it was rocked by explosions. The Oman Environment Authority on Monday said the ongoing spill had affected roughly 390 square kilometres, according to its most recent analysis.

The slick was concentrated around Oman's Hallaniyat archipelago off the country's southern coast, where a marine reserve was established last year to protect sensitive ecosystems home to diverse marine life, including rare sea turtles. The country's environment authority said rapid action was needed to protect the area's biodiversity, including "coral reefs, turtle nesting areas, marine habitats and coastal areas of ecological importance”. 

Diesel prices in the US and Europe surged Monday as a series of refinery disruptions tightened supplies of the fuel used by trucks, farmers, manufacturers and other major industries.

US ultra-low-sulfur diesel futures jumped 7.4% to $4.19 a gallon, the biggest one-day increase since July, while European diesel refining margins rose nearly 10%, Reuters reported. Diesel prices have been rising faster than crude oil benchmarks as traders focus increasingly on shortages of refined products rather than crude itself.

The latest pressure followed a Ukrainian attack on a refinery in Russia's Tatarstan region and renewed attacks by Yemen's Iran-aligned Houthis on Saudi Arabia's Jazan refinery, which has been offline since July 27. The Saudi facility is now expected to resume operations around Aug. 30.

The US Navy is the only force with control over the Strait of Hormuz, US President Donald Trump claimed late on Monday. Speaking during a White House event, he said: “The only one that has control of the Strait of Hormuz right now is the United States Navy. We have a blockade that’s been infallible—it’s a steel wall… We control the Strait, 100%.”

Trump added that the strait is “open now” for non-Iranian traffic and that US forces have "mine-swept" the entire waterway.

Trump called for Iran to compensate families of those killed by Iranian roadside bombs, conflicts led by General Soleimani, USS Cole victims, and hundreds of thousands of protesters over 50 years, including 52,000 in the last five months.

This responds to Iran's request for $300 billion, plus other demands like releasing frozen assets and lifting sanctions, amid threats to keep the Strait of Hormuz closed.

Day 160: Tehran reshuffles military

Day 159: Netanyahu rejects Gaza plan

Day 158: Trump says Iran can’t ‘go on much longer’

Day 157: Iran says Oman deal alone won’t reopen Hormuz

Day 156: Iran says new Strait of Hormuz shipping route agreed with Oman

DAY 155: Resolving US-Iran conflict in 'progressive stages'

Day 154: Trump says Iran talks ongoing as IRGC warns of readiness