Skip to content
You can now search across every topic, entity and event.What's new
European Oil Markets
31JUL

Blockade hits 121 ships, one holed

3 min read
09:33UTC

CENTCOM redirected 121 commercial vessels and disabled five to enforce the US blockade on 1 June; the container ship MSC Sariska V was holed by an unidentified projectile in the Gulf.

EconomicDeveloping
Key takeaway

The US naval blockade widened to 121 redirected ships even as the negotiating channel froze.

CENTCOM (US Central Command) confirmed on Monday 1 June that it had redirected 121 commercial vessels and disabled five ships to enforce the US blockade, up from the 116 redirections it logged on 30 May 1. CENTCOM is the US military command running operations across The Gulf. It redirected 121 vessels yet disabled only five, a roughly 4% kinetic share of the ships it stopped, which means most traffic is turned by warning rather than by fire.

The container ship MSC Sariska V was holed by an unidentified projectile in the Persian Gulf on 1 June, a large breach above the waterline, with no claim of responsibility 2. It is the third named commercial vessel struck after the Olympic Life and the Lian Star. No party has claimed the strike, so whether it was the IRGC, a proxy, or stray ordnance stays unconfirmed.

A blockade this wide raises war-risk premiums and, for European and Asian consumers, means dearer goods and slower deliveries. It widened on the precise day diplomacy briefly opened and slammed shut, with Iran's 09:56 talk suspension running in parallel above it. The militaries kept doing what they do regardless of the diplomatic whiplash overhead.

Deep Analysis

In plain English

CENTCOM (US Central Command) is the US military's regional command for the Middle East. It has been stopping commercial ships from entering Iranian ports since mid-April 2026, turning them away and in some cases disabling them. By 1 June it had redirected 121 ships and disabled five. A 'disabled' ship means it cannot move under its own power and must be towed, leaving crew stranded on board. Separately, the container ship MSC Sariska V was hit by an unknown projectile while sailing through the Persian Gulf. No country or group has said they did it. This is the third named civilian cargo ship to be hit in the conflict. When no one claims an attack on a merchant vessel, it complicates insurance claims and leaves the ship's operators, crew and cargo owners in legal limbo.

First Reported In

Update #115 · Iran moves first, Trump moves by phone

CBS News· 2 Jun 2026
Read original
Different Perspectives
Sanctions compliance officer reviewing a Lukoil International GmbH bid
Sanctions compliance officer reviewing a Lukoil International GmbH bid
OFAC's amended FAQ 1224 gives a compliance desk its first published standard: full severance from Lukoil and a US-jurisdiction blocked account for sale proceeds. The conditions name neither ISAB nor Italy, so a Priolo Gargallo-linked bid answers a different question than a Neftochim Burgas or Petrotel Ploiesti one.
Managed-money funds on Brent Last Day
Managed-money funds on Brent Last Day
CFTC data for the week to 21 July showed managed money flipping 74,400 contracts to a net long of 15,665 against 1,410 short on the Brent Last Day contract, code 06765T. A fund that held that short through July has now covered it, and the spent short base raises the bar for the next leg higher.
Saudi crude exporters
Saudi crude exporters
Saudi-linked tanker transits through Bab el-Mandeb fell to about 7.5 a day after the 24 July underwriting withdrawal, pushing more barrels onto the longer route round the Cape or through the Yanbu terminal. Every diverted barrel ties up a ship for longer, and a fleet that turns slower charges more.
Tanker owners on the Bab el-Mandeb route
Tanker owners on the Bab el-Mandeb route
Lloyd's-market syndicates withdrew war-risk cover from Saudi-linked hulls on 24 July, leaving owners of that class of vessel to sail Bab el-Mandeb uninsured or not at all. Tanker transits on the route fell to roughly 7.5 a day, and cover, once withdrawn, does not return on a shipowner's timetable.
Eni
Eni
Eni's board approved second-quarter results on 29 July, swinging refining EBIT to a EUR0.08bn profit from a year-earlier loss even as group profit doubled, and named Red Sea freight cost as a cap on that improvement. A refiner absorbing higher shipping costs on Saudi-linked crude while its numbers improve treats the freight line as a drag, not a crisis.
Asian buyers (India, Japan, China, South Korea)
Asian buyers (India, Japan, China, South Korea)
Asian refiners are absorbing 62% of Yanbu's 3.75m b/d flow, the bulk of Saudi Arabia's rerouted crude now clearing east rather than into the Atlantic basin. That destination split leaves Asian buyers more exposed to any single Yanbu-specific disruption than under the kingdom's normal multi-terminal export pattern.