Strait of Hormuz attacks force Western capitals and energy markets into crisis management as tanker strikes, airport closures, and soaring prices reshape policy

Two oil tankers struck naval mines in the Strait of Hormuz on October 17-18, according to Iran's Islamic Revolutionary Guard Corps, extending a month-long surge in shipping attacks that drove Brent crude to $109 per barrel and Asian LNG spot prices to $29.30 per MMBtu by October 16, the highest since December 2022. Hormuz oil flows dropped from 20.8 million barrels per day on October 8 to 2.9 million barrels on October 11, cutting global LNG supply by approximately 20 percent. French President Emmanuel Macron will visit the UAE, Kuwait, Bahrain, and Qatar from October 19-21 to discuss Hormuz stability and energy security, the Elysee Palace announced October 14, while the second GCC-EU Summit scheduled for October 24 in Riyadh was postponed October 15 due to continued Houthi threats following attacks on three Saudi airports between October 6-12 that killed at least 20 people. Egypt's National Defence Council pledged October 18 to provide Saudi Arabia with all necessary support as Cairo's parliament authorized potential troop deployment.

European leaders at the October 15-16 summit committed to prolonging state aid for exposed industrial sectors while violent cost-of-living protests erupted October 17 across France, Italy, Belgium, and Portugal. US mortgage rates held at 7.40 percent as of October 15, matching 2023 highs, while September CPI accelerated to 3.7 percent year-over-year, driven largely by gasoline prices jumping 9.1 percent. India issued safety advisories October 18 for nationals in Saudi Arabia following the October 10 death of an Indian national at Riyadh airport. Coverage is limited to October 19 only; the durability of diplomatic initiatives, energy market adjustments, and political stability under sustained supply disruption remain uncertain.

Sources

aljazeera.com rallies.ai thenationalnews.com gcc-sg.org thenationalnews.com outlookindia.com consilium.europa.eu bls.gov