Strait of Hormuz tensions send tanker costs soaring as oil prices climb

Iran says the Strait of Hormuz will remain “closed” until the US meets seven conditions, while Foreign Minister Abbas Araghchi says there is “no military solution” to the conflict. The Pentagon confirmed that all US B-1 bombers have been withdrawn from RAF Fairford following a security incident nearby. UKMTO also reported that a tanker was struck in the Strait of Hormuz, while another vessel off Yemen reported multiple explosions. Meanwhile, Middle East oil exports excluding Iran rose above pre-war levels last week despite attacks on ships in the Strait of Hormuz, according to maritime tracking firm Kpler. Brent crude topped $102 a barrel and Murban reached $110 as oil prices climbed. Follow all the latest developments here:
The US and nine other governments in the Americas have issued a joint pledge to step up action against what they describe as Iran-backed terrorist activity and influence operations across the Western Hemisphere.
In a statement released Monday, the countries said “the Islamic Republic of Iran and its proxies must halt these actions now,” accusing Tehran and allied networks of planning lethal plots, conducting illicit fundraising, interfering in politics and running foreign influence campaigns aimed at strengthening terrorist networks, coercing perceived enemies, undermining legal processes and damaging regional security.
The declaration was signed by the United States, Argentina, Canada, Colombia, Costa Rica, the Dominican Republic, Guyana, Paraguay, Peru and Trinidad and Tobago. The signatories said they would take additional measures against such activity and deepen coordination among law-enforcement, intelligence and judicial authorities to address the threat.
The statement followed a Countering Transnational Terrorism Forum co-hosted last month by the US and Paraguay, which brought together regional partners to boost cooperation against Iran-linked operations in the hemisphere.
US President Donald Trump has signed an Executive Order late on Monday to immediately cut diesel costs by temporarily allowing highway use of tax-free dyed diesel and deferring the federal diesel tax on that fuel through the end of the year — with no interest, no penalties.
The move provides a cost relief at the pump for diesel users.
Red-dyed diesel is typically about 24 cents per gallon cheaper than clear on-road diesel because it avoids the federal highway tax. At current prices above $6/gallon in many areas, that’s a modest but meaningful discount for high-volume users like farmers and fleets.
The newly-formed Mecca Defence Alliance could develop into a “NATO of the Middle East” as Saudi Arabia, Turkey and Pakistan activate their collective-defence commitments amid escalating attacks by Iran-backed Houthi forces, US Representative Joe Wilson said.
“The Mecca Defence Alliance has the potential to be the NATO of the Middle East,” Wilson said Monday on X, thanking Turkey, Pakistan and Saudi Arabia for activating the pact in response to what he described as Houthi “Iranian-backed aggression.”
The comments came after the three countries agreed in Riyadh to immediately implement their collective-defence commitments and take steps toward the rapid deployment of agreed military forces and capabilities to Saudi Arabia.
The decision followed an emergency meeting of the alliance’s Strategic Political and Defence Committee as fighting intensified in Yemen. Saudi-backed Yemeni forces have launched a major operation against the Houthis, who have claimed attacks targeting Saudi oil facilities and airports.
US Central Command says its warships have now redirected 130 commercial vessels since resuming a naval blockade of Iranian ports in mid-July, as part of a sustained campaign to choke off maritime trade with Iran amid the ongoing US-Iran conflict.
In a statement issued Monday, CentCom said the latest ship was turned away on October 5, bringing the total to 130 since the operation restarted on July 14 at the direction of President Donald Trump.
The command also said it has disabled three vessels that refused to comply with orders and destroyed 13 ships over the past 12 weeks that it says either violated the blockade or were linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) “shadow network.”
President Donald Trump said the US war with Iran was “essentially almost over” while defending higher gasoline prices as a temporary cost of preventing Tehran from obtaining a nuclear weapon.
Speaking during his campaign stop in Nebraska on Monday, Trump said the US was “saving the world from what could be one of the worst tragedies ever” and insisted Iran would not be allowed to acquire a nuclear weapon.
“They will not have a nuclear weapon. They understand. That’s decided.”
Trump characterised the increase in fuel prices as an “artificial” and temporary consequence of the conflict, arguing that the cost was small compared with the potential consequences of an Iranian nuclear weapon.
“It’s a small price to pay for keeping the world safe,” he said.
Trump also predicted gasoline prices would fall sharply once the conflict ends, recalling seeing US gasoline prices at $1.85 a gallon before the war.
“We will have it lower than that in a very short period of time,” he said. Trump's comments come as oil markets show signs of recovery but remain under severe logistical pressure. Brent crude remains above $100 a barrel because of higher tanker, insurance and refining costs.
British officials have warned Israel it will expel 27 Israeli diplomats and their families from London if Israel proceeds with closing the UK consulate in East Jerusalem and expelling its 27 British diplomats.
British Ambassador to Israel Simon Walters delivered the message to Israeli officials, saying London would expel one Israeli diplomat for each of the 27 British diplomats whose status would end if the consulate closes.
The figure of 27 corresponds to the number of British diplomats reported to work at the East Jerusalem consulate, whose diplomatic credentials Israel plans to revoke as part of the closure. The closure is due to take effect around October 8, 2026, following a 30-day notice issued by Israeli Foreign Minister Gideon Sa’ar after the UK announced sanctions targeting Israeli settlements in the West Bank.
The dispute stems from UK sanctions on goods and entities linked to Israeli settlements, which Israel says are one-sided and hostile. In response, Sa’ar announced a package of countermeasures, including the consulate closure, removal of British representatives from a Gaza coordination centre, ending British involvement in training Palestinian security forces, and barring several British politicians and public figures from entering Israel or the occupied territories.
Turkey and Pakistan will undertake a "rapid deployment" of troops to Saudi Arabia as part of a new mutual defence alliance, the three countries said Monday, as the Gulf kingdom faces escalating attacks from Yemen's Houthis.
Following a meeting in Riyadh, the trio agreed "to move immediately to the practical implementation of the collective defence commitments and to take the necessary measures to provide the agreed military forces and capabilities and ensure their rapid deployment in the Kingdom", according to a joint statement.
Iranian Interior Minister Eskandar Momeni arrived in Doha on Monday for talks with Qatari officials, Iranian state media reported.
Momeni, who previously held talks with his Pakistani counterpart as Islamabad sought to mediate between Tehran and Washington, was officially welcomed by Qatar’s Minister of State Abdulaziz bin Faisal upon arrival.
The visit came at the invitation of Qatari Interior Minister Khalifa bin Hamad bin Khalifa Al Thani. Momeni is expected to meet his Qatari counterpart and other officials during the trip to discuss bilateral ties, according to Iranian media.
The US Mission has strongly encouraged all US citizens to remain vigilant and follow the guidance of national alerts released by Saudi Arabia’s Civil Defense in a tweet.
Israel’s Ambassador to India Reuven Azar on Monday said Iran's attempts to disrupt global shipping and hijack international trade through the Strait of Hormuz have failed, warning that Tehran must either come to terms with the United States or face direct military consequences.
Contextualising the ongoing friction between Washington and Tehran, Ambassador Azar highlighted Iran's diplomatic stance and warned that its refusal to engage constructively will ultimately force a severe response, accusing Tehran of negotiating in "bad faith."
"The Iranians have proven time and again that they are negotiating in bad faith. Eventually, they will have to face reality: either come to terms with the United States or face the consequences militarily," Ambassador Azar stated.
UKMTO has received a report of an incident within the Strait of Hormuz.
A tanker has reported being struck by an unknown projectile, causing a fire in the engine room.
There are no reported casualties or environmental impact at the time of this warning.
Authorities are investigating. Vessels have been advised to transit with caution and report any suspicious activity to UKMTO.
This is the fourth incident reported to UKMTO in the last 24 hours and marks another major attack on commercial shipping in the Strait of Hormuz, with at least seven tanker attacks reported during the first week of October.
Iranian President Masoud Pezeshkian said Monday that negotiations with the United States were "meaningless" and only resulted in renewed American attacks, state media reported.
"So far, they have attacked us three times after talks, and this shows that they are not seeking dialogue; rather, their goal is to overthrow the Islamic Republic of Iran," Pezeshkian was quoted as saying by the state news agency IRNA. "With an enemy that every day resorts to assassination, sanctions, pressure and threats, and that breaks its commitments, negotiations are meaningless."
United Nations Secretary-General Antonio Guterres raised the alarm Monday over the "sharp escalation" of fighting in Yemen, his spokesman said, as Saudi Arabia led a counteroffensive against Houthi fighters.
"The Secretary-General is deeply concerned by the sharp escalation in fighting, which has intensified markedly in recent days. He condemns the continued Houthi cross-border attacks against the Kingdom of Saudi Arabia," said his spokesman Stephane Dujarric.
Loud explosions heard in northern Riyadh: AFP journalist, residents.
President Donald Trump argued that rising US gasoline prices are now being driven less by disruption in the Strait of Hormuz and more by pressure on global refining capacity, pointing to Ukrainian strikes on Russian refineries and refinery closures in Democratic-led states such as California. Crude flows from the Middle East have rebounded sharply in recent weeks, at times exceeding pre-war levels, but fuel markets remain strained by refinery outages, tighter supplies of refined products and higher transport costs.
Yemen's Houthis warned airlines on Monday that Saudi airspace was unsafe for civilian flights, the group's Saba news agency reported, after the Saudi-led coalition said it had joined a counteroffensive announced by Yemen's internationally recognised goverment.
In a statement published by Saba, the Houthis' HOCC agency said Saudi airspace "is not safe" and "will be the theatre of operations of our armed forces".
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Iran's judiciary said two men were executed on Monday for involvement in the deaths of four police officers during anti-government protests that peaked in January.
Authorities accused them of murdering the officers in the central city of Isfahan during protests that began in the capital Tehran in December over economic grievances before spreading nationwide.
The movement rapidly evolved into large anti-government rallies that peaked on January 8 and 9, causing unprecedented destruction and thousands of deaths.
"Alireza Sepahi and Alireza Raissi were hanged this morning after the Supreme Court upheld the verdict," the judiciary's Mizan Online website said, without specifying the dates of their arrest or trial.
A tanker turned back after being threatened by Iranian forces in the Strait of Hormuz on Monday, a British maritime agency reported.
Iran has sought to assert control over the vital shipping route since the start of its war with the United States and Israel.
It has repeatedly targeted vessels it accuses of transiting without authorisation, while the US is maintaining a counter-blockade of Iranian ports.
"A tanker transiting the Strait of Hormuz inbound was hailed by the IRGC and instructed to turn back or the vessel would be targeted," the United Kingdom Maritime Trade Operations Centre (UKMTO) said, referring to Iran's Revolutionary Guards, the ideological arm of the country's military.
"The master of the tanker has confirmed that they have complied with the instruction," the UKMTO said.
The ship was entering the strait near the Omani coastline, the agency added.
Israeli Prime Minister Benjamin Netanyahu on Monday vowed there would be no Hamas rule in Gaza as he attended a memorial event marking three years since the militant group's October 7, 2023 attack.
Monday is a national day of remembrance for the deadliest day in Israel's history, with flags lowered to half-mast on public buildings from 6:29 am, the time the attack began.
Speaking during a state ceremony at the Mount Herzl military cemetery in Jerusalem, Netanyahu said "we have achieved enormous accomplishments, but there are still missions ahead of us, and we intend to complete them".
"There will be no Hamas rule in Gaza," he added, vowing to continue targeting anyone who was involved in the attack or who held hostages.
Iran managed to disable terminals used for Elon Musk's Starlink satellite internet service during anti-government protests in January, a senior Iranian official said on Monday.
The comments represent the first time an Iranian official has spoken about the alleged capabilities to counter the technology in Iran.
During the wave of protests over economic conditions that peaked in early January, Iran cut off the internet for several weeks, preventing the sharing of information with the rest of the world about the demonstrations and subsequent crackdown.
Yemen's Houthis said Monday that Saudi airstrikes killed a woman student in Sanaa governorate, after government forces announced an offensive on the capital city.
"A student was killed and two others were wounded in a Saudi attack" targeting the Bani Hashish area, the Houthi-affiliated TV channel Al-Masirah reported, saying strikes also hit the Saada region, a Houthi stronghold.
Israeli forces killed one Palestinian and injured two others in the occupied West Bank on Monday, Palestinian authorities said, while the military said troops fired at a car that had hit an army vehicle.
The military said a "vehicle carrying three suspects... accelerated toward an IDF vehicle and hit it" in the area of Bani Naim, north of the city of Hebron.
In a statement, it said no injuries were reported among Israeli forces and that soldiers "responded by firing toward the vehicle, and hits were identified."
The Palestinian General Authority for Civil Affairs said "Israeli forces opened fire on a civilian vehicle" at the entrance to Bani Naim, without giving details on whether those inside had been attempting to ram soldiers.
"One citizen was killed and two young men sustained serious and moderate injuries," it added, saying the wounded had been transferred to hospitals inside Israel and that the identity of the deceased remained unknown.
The global squeeze on crude oil and refined fuel supplies is set to worsen, while rebuilding stockpiles depleted during the Strait of Hormuz crisis could take up to two years, Saudi Aramco Chief Executive Amin Nasser said on Monday.
Speaking to Reuters at the Energy Intelligence conference in London, Nasser said oil markets would remain under pressure until the strategic waterway fully reopens and market confidence returns.
"Until Hormuz fully re-opens and confidence returns, the crude reality is that pressure at both ends of the barrel will intensify. Even then, replenishing inventories while meeting demand could take up to two years," Nasser said.
His warning points to a potentially prolonged impact from the disruption, even if oil flows through the Strait of Hormuz begin to normalise.
Almost 3 billion barrels of oil supply have been lost since the start of the conflict, Nasser said, while about 1 billion barrels have been released from stocks to help offset the shortfall.
Nasser said the remaining roughly 6 billion barrels of oil in storage should not be considered practically available to the market.
"The system is already straining," he said.
"And with precious little else the world can turn to, the supply resilience cushion is scarily thin," he told the two-day conference attended by leaders from across the energy sector.
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A tanker transiting the Strait of Hormuz was ordered to turn back after being hailed by Iran’s Islamic Revolutionary Guard Corps (IRGC), the UK Maritime Trade Operations (UKMTO) said on Monday.
The incident occurred about 11 nautical miles north of Khasab, Oman, according to UKMTO Advisory 152-26.
The tanker was inbound through the Strait of Hormuz when it was hailed by the IRGC and instructed to turn back or face being targeted.
The vessel’s master confirmed that the tanker complied with the instruction, UKMTO said.
Authorities are investigating the incident.
UKMTO advised vessels operating in the area to transit with caution and report any suspicious activity.
The Saudi Arabia-led military coalition says it has destroyed 324 high-value targets in Yemen since launching “Operation Dawn of Yemen”, the Saudi Press Agency (SPA) reported on X.
More than 100 fighter jets took part in the operation at dawn on Monday, coalition spokesman Major-General Turki Al Maliki said.
“We are providing air support to back the Yemeni armed forces on the ground around the clock,” Al Maliki said.
The coalition said it is also providing air protection for the Bab Al Mandab Strait, while operations against moving targets are continuing.
It said aerial support for Yemeni government forces on the ground is being provided around the
IndiGo has revised its fuel charges for all new bookings made from 0001 hours on October 6, 2026, citing a sharp rise in Aviation Turbine Fuel (ATF) prices.
The airline said the increase in fuel costs, along with recent geopolitical developments in West Asia, has pushed ATF prices to among their highest levels in the last decade.
"The continuous rise in the fuel prices, with the latest month-on-month increase exceeding 14%, has taken ATF costs to levels that are amongst the highest in the last decade," IndiGo said in a statement.
Under the revised charges, passengers travelling up to 500 km on domestic routes will pay a fuel charge of Rs 375.
For domestic flights covering 501-1,000 km, the charge will be Rs 600, while flights covering 1,001-1,500 km will attract a charge of Rs 900.
For journeys between 1,501 and 2,000 km, passengers will pay Rs 1,150. Flights covering more than 2,000 km will carry a fuel charge of Rs 1,300.
IndiGo has also revised fuel charges for international flights based on the distance and destination.
For flights within the SAARC region, routes up to 500 km will attract a charge of Rs 1,000, while routes covering 501 km and above will carry a charge of Rs 3,000.
Flights to Southeast Asia, the Gulf Cooperation Council (GCC) and the Middle East, and North and East Asia will attract a fuel charge of Rs 5,500.
The charge for flights to Africa has been fixed at Rs 6,000, while passengers travelling to Europe will pay Rs 10,000.
IndiGo said the revised charges were kept lower than the increase in its actual fuel costs to limit the impact on passengers.
Senior officials from Pakistan, Saudi Arabia and Turkey will meet in Riyadh on Monday for a meeting of the Strategic Political and Defence Committee (SPDC), established under the Mecca Joint Defence Agreement.
Pakistan’s Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Defence Minister Khawaja Muhammad Asif and Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir will attend the meeting, Pakistan’s Foreign Ministry said.
Turkey will be represented by Foreign Minister Hakan Fidan, National Defence Minister Yasar Guler and Chief of General Staff Gen. Selcuk Bayraktaroglu, according to Turkish Foreign Ministry sources.
The meeting will discuss the latest developments in the region and review ongoing cooperation under the Mecca Agreement.
Minister for Legal and International Affairs Kazem Gharibabadi made the remarks in Tehran on Sunday (local time), saying that the United States has submitted its views on Iran's proposal through mediators.
He stressed that Iran's proposal is the "seven-day plan" that was presented to the other side by Iranian Foreign Minister Seyed Abbas Araghchi in New York late last month.
Gharibabadi said, "The US views are currently being reviewed inside the country through the appropriate channels," adding that whenever Iran's final views are ready, the necessary action will be taken through "appropriate channels."
He added that Iran is simultaneously making the necessary preparations for any other scenario as well, reports Xinhua news agency.
Middle East crude exports rose above pre-war levels on four days in the final week of September, reaching up to 22.5 million bpd, Reuters reported, citing Kpler data. Exports averaged 18 million bpd before the US-Israel war on Iran began.
The rise came despite increased tanker attacks, including incidents in the Strait of Hormuz and Gulf of Aden.
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Iran's oil minister Mohsen Paknejad has resigned and been replaced by the country's top oil executive, the president's office said in a statement on Sunday, amid a blockade on Tehran's oil exports by the United States.
"Following the acceptance of Mohsen Paknejad's resignation, Hamid Bovard", the CEO of the National Iranian Oil Company, "has been appointed as acting Minister of Oil by a decree from the president", said the statement carried by state broadcaster IRIB.
In a news bulletin on the minister's resignation, state television ran an interview with an official from the Iranian presidential office who said Paknejad initially offered his resignation a while ago "due to personal issues" but this was rejected.
Iranian President Masoud Pezeshkian had asked Paknejad to continue in his post but was now accepting his departure as the minister had insisted on leaving, the official added.
He said that Pezeshkian "commended his efforts and sincere service" after accepting his decision to quit.
The Coalition to Restore Legitimacy in Yemen will continue providing operational support to the Yemeni Armed Forces, spokesperson Maj. Gen. Turki Al-Maliki said.
Al-Maliki accused the Houthi militia of attacks and abuses against Yemenis, including forced displacement, starvation and child recruitment.
He also cited Houthi attacks on Saudi Arabia and threats to vessels in the southern Red Sea and Bab Al-Mandab Strait.
Al-Maliki said Saudi Arabia would continue taking measures to protect its sovereignty and security, while supporting Yemen until its state institutions are restored and threats to maritime navigation are ended.
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Oil prices showed mixed movements in early Tokyo trading on Monday, October 5, with Brent crude and Murban rising while West Texas Intermediate (WTI) and natural gas edged lower, according to OilPrice.com taken at 8:37 am Tokyo time.
Brent crude was quoted at $102.60 a barrel, up 39 cents, or 0.38%. Murban crude climbed to $110.80, gaining $1.42, or 1.30%. WTI crude, the US benchmark, slipped 2 cents to $91.09, down 0.02%, while natural gas fell 2.4 cents to $3.011, a decline of 0.79%. Oil prices split as Brent tops $102, Murban hits $110 per barrel on Oct. 5, 2026
Iran's Parliament Speaker Mohammad Bagher Ghalibaf said that the strategic Strait of Hormuz will remain "closed" until the US meets seven conditions based on the 14-point June Memorandum of Understanding, as tensions between Tehran and Washington continue to escalate amid the US-Israel conflict with Iran.
Ghalibaf made the remarks in his speech at the Iranian Parliament, saying that the US had recently put forward proposals through a mediator, but that Iran's position remained clear.
Rates for very large crude carriers, or VLCCs, have surged to an unprecedented $1.3 million per day, according to Poten data. The figure is roughly 43 times the level recorded in early January, when the benchmark Middle East Gulf-to-Far East route cost about $30,000 per day. At that rate, freight adds almost $33 to the cost of each barrel of crude — about 27% of its delivered cost, based on Poten’s estimate of Brent crude near $120 per barrel. In January, freight added only about $1.73 per barrel, or roughly 3% of delivered cost. Poten & Partners is a global leader in shipping and commodity brokerage, advisory services, and business intelligence for the energy and maritime industries.
The Israel Defense Forces (IDF) said that it eliminated a commander in Hamas' military wing and an operative from the group's observation unit in separate strikes in the Khan Younis area of the Gaza Strip.
In a statement on Telegram, the IDF said it struck the Khan Younis area earlier on Sunday and eliminated Muad Gamal Abu Nuseira, a commander in Hamas' military wing.
"Earlier today (Sunday), the IDF struck in the Khan Younis area in the Gaza Strip and eliminated Muad Gamal Abu Nuseira, a commander in Hamas’ military wing," the IDF said.
It stated that in a separate strike on Saturday, it eliminated Mahmoud Ibrahim Dib Alyan, whom it described as a "terrorist" in Hamas' observation unit.
The Pentagon confirmed reports that the US has withdrawn all B-1 bomber planes from Royal Air Force Fairford, the UK airbase where a suspicious incident triggered nearby evacuations.
A statement from a Pentagon official said "we can acknowledge now that all US bombers that were deployed to RAF Fairford have re-deployed to their home stations in the United States."
The statement noted that "operational security precluded us from confirming the movement of our assets and forces in real-time."
Police were called to the base in southwest England last Sunday after a local farmer reported a group of men with several vans engaged in "suspicious" activity.
The UK Maritime Trade Operations (UKMTO) has reported an incident about 60 nautical miles south of Al Mukha, Yemen, involving a tanker that sighted multiple explosions nearby.
The vessel’s crew are safe, and no environmental damage has been reported, UKMTO said. Authorities are investigating the incident, with no further details immediately available.
UKMTO has urged vessels operating in the area to exercise caution and remain alert to any suspicious activity.
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