Gaslog Shanghai hit in Hormuz as WTI tops $86 on Iran strikes

Iran's renewed attacks on shipping in the Strait of Hormuz left a Qatari LNG carrier disabled and pushed WTI crude above $86 a barrel as Washington readied fresh strikes on Tehran.

The Bermuda-flagged LNG carrier Gaslog Shanghai was struck by an unknown projectile 11 nautical miles northeast of Oman on July 31 at 23:30 UTC while transiting outbound from the Gulf, according to maritime security firm Vanguard. The projectile hit the vessel's portside engine room, causing a fire that was extinguished, but the blast triggered a blackout and the carrier lost propulsion. UKMTO confirmed the regional coast guard had been informed and reported no injuries to the crew.

Mohammad Bagher Zolghadr, secretary of Iran's Supreme National Security Council, warned that continued US maritime blockade would tighten Tehran's control over the Strait of Hormuz and could close other key maritime chokepoints. "This cost will be borne by the global economy, energy markets, and American voters," he said.

WTI crude futures settled up more than 3 percent at $86 a barrel, while Brent rose over 1 percent to $90.12. Both benchmarks remain down more than 5 percent for the week, reflecting the whipsaw between ceasefire hopes and renewed escalation. The attack came hours after The Wall Street Journal reported that President Donald Trump had ordered the US military to prepare new strikes on Iran, potentially as early as this weekend. White House spokeswoman Karoline Leavitt said "Iran will continue to pay until it sits down at the negotiating table in a way that President Trump considers meaningful."

The stakes for global energy markets are substantial. Roughly 20 percent of global LNG supply transits the Strait of Hormuz, and the waterway handles about 21 percent of global oil trade. A US strike on Iranian energy infrastructure — which CBS News reported Washington is considering, including oil refineries and power plants — could trigger Iranian retaliation that closes the strait entirely, a scenario that would send crude and LNG prices sharply higher.

A second Gaslog vessel hit in a week

The Gaslog Shanghai had its AIS turned off at the time of the attack. According to ship-tracking data from Pole Star Global, the carrier had crossed the Strait westbound on July 9 after the US-Iran memorandum of understanding broke down, and called at ports in Qatar and Kuwait before its eastbound transit on July 31. The vessel is the second Gaslog-owned LNG carrier hit in recent days — the Gaslog Salem was struck by a drone at berth in Egypt's Damietta port last week, at the same time as the FSRU Energos Winter on an adjacent berth.

A separate incident on July 31 saw a Liberian-flagged tanker report a near miss with an unknown projectile 21 nautical miles northeast of Khasab, Oman. UKMTO said the master reported "a large splash and explosion in close proximity to the vessel," with no damage reported. Iran does not recognize the southern corridor in Omani waters where the US provides guided transits and has repeatedly threatened vessels using that route.

Conflict spreads beyond the Gulf

The attack on the Gaslog Shanghai marks the latest in a widening conflict. Over the past week, the US completed "large-scale" strikes on multiple Islamic Revolutionary Guard Corps targets, and Iran retaliated by attacking US military bases in Kuwait and Bahrain. Kuwait said its air defenses intercepted Iranian drone attacks, while Egypt reported a drone striking two vessels at Damietta port — the first attack on Egyptian territory since the war began, raising concerns that the Bab el-Mandeb strait at the Red Sea's southern end could become a second target.

The last time the Strait of Hormuz faced a comparable threat was in 2019, when attacks on tankers off Fujairah and the downing of a US drone pushed Brent above $75 a barrel within weeks. The current escalation, with both sides actively striking military targets, carries a higher risk of miscalculation. If diplomatic talks show progress, Trump could still call off planned strikes, the WSJ reported — but with Iran's supreme national security council vowing to tighten control of the strait, the window for de-escalation is narrowing.

This article is for informational purposes only and does not constitute investment advice.