US Sinks Iranian Oil Tanker, Tehran Fires Missiles at Jordan Base as Strait of Hormuz Crisis Escalates

US forces struck five Iranian oil tankers on Tuesday, sinking one, in response to Tehran twice targeting an American warship, US Central Command (Centcom) said. Four of the tankers, linked to Iran's Revolutionary Guards Corps (IRGC), were hit in the Gulf of Oman, while a fifth was targeted near Kharg Island, Iran's main oil export terminal. Centcom described the vessels as "part of a multi-billion-dollar shadow network that funds the IRGC and its regional proxies." The M/T Riesco was confirmed sunk in the Gulf of Oman, with video of the damaged vessel released on X.

Tehran responded by launching missiles at a US base in Jordan — most of which were shot down — and said it attacked two US vessels and eight oil tankers in the Strait of Hormuz. Jordan's armed forces said they intercepted 18 of the 20 Iranian missiles, with the remaining two falling in unpopulated areas. Separately, Iran's Revolutionary Guards claimed on Wednesday they had struck two US vessels, eight oil tankers and 10 "non-compliant vessels" attempting to transit the Strait of Hormuz, according to state media.

The escalation is the latest in a series of tit-for-tat strikes that have intensified more than six months after the US and Israel launched attacks on Iran on 28 February. Oil prices rose in Asian trading, with Brent crude up 1.5% at $99.35 a barrel and US-traded oil 1.3% higher at $94.23. Pressure on prices has been exacerbated by wider regional instability.

On Tuesday, Yemen's Iran-backed Houthi movement attacked energy facilities and civilian infrastructure in Saudi Arabia, injuring 73 people and causing fires that led to a temporary halt in operations at oil installations, according to Saudi authorities.

Why This Matters

Direct US-Iran military confrontation threatens to disrupt oil shipments through the Strait of Hormuz, through which about 20% of the world's petroleum passes.
Brent crude approaching $100 a barrel will flow through to petrol prices globally, particularly in Asia and Australia, compounding inflation pressures.
The conflict risks drawing in regional allies — Jordan's active missile defence role and Saudi Arabia's simultaneous Houthi attack underline the widening geographic scope.

Background

Tensions between the US and Iran have escalated sharply since the US and Israel conducted strikes on Iran on 28 February 2026. The current confrontation began when Iran targeted a US warship with ballistic missiles — which Centcom said were "successfully evaded" with no American casualties — prompting the US strikes on Iranian oil tankers. The US has long accused the IRGC of using oil revenues to fund proxy forces across the Middle East, including in Yemen, Lebanon, Syria and Iraq.

Key Perspectives

United States: Views the tanker strikes as a proportional response to Iran's attacks on a US warship and as disruption of a funding network for the IRGC and its proxies. No US casualties have been reported in any of the engagements to date. Iran: Frames its missile launch at the Jordan base and claimed strikes in the Strait of Hormuz as retaliation for the US tanker attack. The Guards' claim of hitting US vessels and non-compliant tankers signals readiness to escalate further in the strategic waterway. Jordan: Intercepted 18 of 20 Iranian missiles, demonstrating active involvement in US coalition defence. Its official spokesperson confirmed the interceptions but reported no damage beyond two missiles landing in unpopulated areas.

What to Watch

Brent crude price movement — a sustained break above $100 a barrel would trigger broader market and political responses.
Any confirmation of damage to commercial shipping in the Strait of Hormuz, which would sharply raise insurance and shipping costs.
Potential third-party intervention — diplomatic efforts by China, Iraq or Gulf states to de-escalate the cycle of retaliation.

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