IRGC destroys 2 radar sites as Strait of Hormuz crisis deepens

Iran's IRGC destroyed a maritime radar system on Oman's Salama Island and a US radar station inside the Strait of Hormuz, retaliating for American airstrikes that have killed at least 35 people across Iran's southern provinces.

"The attacks on Omani territory represent a dangerous escalation that directly threatens a country that has tried to mediate between the two sides," said Elena Fischer, geopolitical risk analyst at Edgen. "Oman's coastal radar coverage over the Strait of Hormuz is now compromised."

Brent crude rose 0.2% to $84.93 a barrel after briefly topping $86, while gold gained as investors sought havens. The VIX, Wall Street's fear gauge, remained elevated above 22 as the sixth consecutive night of US strikes targeted Iranian air defenses, missile sites and coastal surveillance systems across Hormozgan, Bushehr and Khuzestan provinces.

The Strait of Hormuz handles about 21% of global oil trade, and Iran has declared the waterway closed until further notice. With the US reinstating a naval blockade of Iranian ports and India banning seafarer deployment through the strait, the disruption threatens to push Brent above $100 a barrel if the standoff persists beyond August.

The IRGC said it destroyed the radar installations using precision strikes, calling the operation retaliation for US bombing campaigns that have hit Bandar Abbas, Qeshm Island, Bushehr and Ahvaz since the ceasefire collapsed on July 8. Iranian state media reported that at least 35 people have been killed and more than 300 wounded across five nights of American strikes, including near the Shahid Baghaei children's cancer hospital in Ahvaz, which was evacuated.

Oman, which has tried to position itself as a neutral mediator, now finds itself directly in the crossfire. The attack on Salama Island follows IRGC strikes on July 12 that hit coastal radar sites in the Musandam Peninsula — which overlooks the Strait of Hormuz — as well as logistics stores at an airbase in central Oman and bunkering facilities in Duqm. Omani authorities have downplayed the incidents, with Foreign Minister Sayyid Badr Al Busaidi telling Le Monde on July 12 that "complex talks have begun to shape a lasting framework guaranteeing freedom of navigation in the Strait of Hormuz."

Oil Markets Price in Prolonged Disruption

Brent crude has risen more than 12% since the ceasefire collapsed, though it remains well below the $120 peak reached during the conflict's earlier phase. The backwardation structure in Brent futures has steepened, indicating traders expect sustained supply tightness. Iran's threat to impose environmental compensation fees on ships transiting the strait — calculated by vessel type, tonnage and cargo — adds another layer of cost uncertainty for shippers already grappling with war risk premiums that have surged to multiyear highs.

The US has intercepted at least two vessels attempting to violate its reinstated blockade of Iranian ports, including the Curacao-flagged M/T Belma, which was disabled by a Hellfire missile strike after ignoring warnings while heading toward Iran's Kharg Island export terminal. CENTCOM said it has redirected three commercial vessels since the blockade was reimposed on Tuesday.

Regional Spillover Threatens Broader Conflict

Iran has expanded its retaliation beyond the strait, launching missile and drone attacks on US military facilities in Jordan, Kuwait, Bahrain and Qatar. The IRGC claimed it struck the Al Udeid airbase in Qatar — the largest US base in the Middle East — with ballistic missiles, while also targeting Patriot air defense systems and radar sites in Kuwait and communications infrastructure in Bahrain. Kuwait's military confirmed it was intercepting "hostile drone attacks," and Bahrain activated air raid sirens.

The widening geographic scope of attacks has prompted the European Union Aviation Safety Agency to warn airlines to avoid the airspace of Bahrain, Kuwait, Qatar, the UAE and parts of the Gulf of Oman through at least July 29, citing "unpredictable military developments" and the risk of misidentification by air defense systems.

The last time the Strait of Hormuz faced a sustained closure threat was during the Iran-Iraq War in the 1980s, when the Tanker War saw Iran attack Kuwaiti and Saudi vessels, prompting US naval intervention. That crisis lasted more than two years and contributed to a doubling of oil prices. The current standoff, now in its fifth month since the initial US strikes in late February, has already disrupted global shipping routes and forced energy importers from Asia to Europe to seek alternative supply sources.

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