Gulf Shipping Crisis Enters Day 5 as Oil Prices Jump 12%

Since the US-Iran war erupted on Saturday, the Strait of Hormuz has been paralyzed. By Wednesday, at least 200 ships, including oil tankers and cargo vessels, remained stranded off Iraq, Saudi Arabia, and Qatar. Eight vessels have been struck since the conflict began. Qatar shut down all gas production Wednesday and won't resume normal exports for at least a month. Iraq cut oil output after running out of storage. Saudi Aramco's key Ras Tanura export terminal was also struck. Oil prices have risen 12% since Saturday, prompting Goldman Sachs to raise its Brent crude forecast by $10 to $76 per barrel and WTI by $9 to $71. President Trump pledged US Navy escorts and political-risk insurance for Gulf shipping to stabilize energy flows; commercial war risk insurance costs have surged at least five-fold. Asia, which sources 60% of its oil from the Middle East, faces the sharpest impact, with Indonesia and Japan turning to US supplies while India eyes Russian crude as replacements.