Three tankers damaged in Gulf and one seafarer killed as US-Iran conflict escalates

At least three tankers were damaged off the Gulf coast, and one seafarer was killed, as Iranian retaliation for US and Israeli strikes on Iran exposed ships to collateral damage, shipping sources and officials said on Sunday.

Risks to commercial shipping have surged in the past 24 hours, with more than 200 vessels, including oil and liquefied gas tankers, dropping anchor around the Strait of Hormuz and surrounding waters, shipping data showed on Sunday.

Iran has said it has closed navigation through the critical waterway, prompting Asian governments and refiners — key buyers — to assess oil stockpiles.

The strait, situated between Iran and Oman’s Musandam exclave, is the Gulf’s only link to the open ocean and global markets.

Shipping companies Maersk, MSC, and Hapag-Lloyd have all halted traffic through the strait.

Major container shipping lines have rerouted around the Cape of Good Hope.

⚡#BREAKING Reuters, citing maritime security sources: Marshall Islands crude oil tanker MKD VYOM hit by a projectile off the coast of Oman pic.twitter.com/SuNUCM1m8V

— War Monitor (@WarMonitors) March 1, 2026

It was not immediately clear who launched the projectiles and drones that targeted or damaged ships on Sunday.

A projectile hit the Marshall Islands–flagged product tanker MKD VYOM, killing a crew member on board, as the vessel sailed off the coast of Oman, vessel manager V.Ships said on Sunday.

“The vessel suffered an explosion and subsequent fire after being struck,” V.Ships Asia said in a statement.

“It is with great sadness that we confirm one crew member, who was in the engine room at the time of the incident, has died,” the statement said.

The International Maritime Organization, the UN’s shipping agency, urged companies to avoid sailing through the affected area until conditions improved.

A Palau-flagged oil tanker under US sanctions was also hit on Sunday off Oman’s Musandam peninsula, injuring four people, the country’s maritime security center said without specifying what hit the vessel.

Another tanker in the UAE port of Jebel Ali was almost damaged by falling debris from an aerial interception after overnight Iranian attacks targeting Gulf states, maritime security sources said.

A third oil-bunkering tanker was damaged off the UAE coast, two shipping sources said.

A fourth vessel, an oil products tanker, was targeted with a drone off the coast of the UAE, although it managed to sail without being damaged, maritime security sources said.

Port operations at Jebel Ali have been paused due to the situation, officials said on Sunday.

US President Donald Trump said, meanwhile, that the United States had destroyed nine Iranian navy ships and pummeled Iran’s naval headquarters.

‘Ships may be targeted deliberately or in error’

“The US-Israeli attack on Iran dramatically increases the security risk to ships operating in the Persian Gulf and adjacent waters,” said Jakob Larsen, chief safety and security officer at shipping association BIMCO.

“Ships with business connections to US or Israeli interests are more likely to be targeted, but other ships may also be targeted deliberately or in error,” Larsen said.

As Tehran attacked targets across the Gulf on Sunday to avenge slain supreme leader Ayatollah Ali Khamenei, the Strait of Hormuz’s status has raised fears of a global oil shock.

Risk of mines

Vessels were advised to keep clear of the strait and wider Gulf of Oman because of the risk of retaliatory strikes by Iran, the US transport ministry’s Maritime Administration said in a note on Saturday.

“Any US-flagged, owned, or crewed commercial vessels that are operating in these areas should maintain a standoff of 30 nautical miles from US military vessels to reduce the risk of being mistaken as a threat,” it said.

There was also the potential risk of mines being laid by Iranian forces in the narrow lanes within the Strait of Hormuz, security sources said.

The Iranian military loaded naval mines on vessels in the Persian Gulf in June, heightening concern in Washington that Tehran was gearing up to establish a Strait of Hormuz blockade, two US officials told Reuters in July.

Global trade

Only Saudi Arabia and the UAE have pipelines that allow them to bypass it, but those carry a fraction of the crude oil that transits Hormuz.

More than 80 percent of the oil and gas moving through the strait is destined for Asian markets, according to the US Energy Information Administration.

That includes Iran’s own oil exports, 90% of which are bought by China, historically a key backer of Tehran.

War has impacted the Strait of Hormuz before. Oil transit was disrupted in 1984 when warring Iran and Iraq attacked each other’s shipping, damaging or destroying more than 500 vessels.

Maritime sources said they expected war risk insurance rates to surge when underwriters reviewed cover on Monday.

War risk coverage is required when sailing into perilous areas and the Lloyd’s of London market has already listed Iran, the Gulf, and parts of the Gulf of Oman as high-risk.

“We would estimate that near-term rate increases for marine hull insurance in the Gulf could range from 25% to 50%,” said Dylan Mortimer at insurance broker Marsh.