A liquefied natural gas tanker carrying a full cargo from Qatar was struck by a projectile while transiting the Strait of Hormuz, dramatically escalating tensions in the Middle East and placing fresh pressure on global energy markets.

The vessel under attack has been identified as the Gaslog Shanghai LNG carrier. The United Kingdom Maritime Trade Operations (UKMTO) reported that the ship was hit by an unidentified projectile approximately 11 nautical miles northeast of Oman. The attack damaged the engine room, leaving the vessel without power. No casualties or environmental pollution have been reported. Unnamed US officials told the Wall Street Journal that former President Donald Trump has ordered the military to prepare for a new round of strikes against Iran, which could begin as early as this weekend.

On Wednesday, US President Donald Trump stated in an interview that the US will retaliate following missile attacks by Iran on American forces. Trump declared that the US will strike Iran "very hard" and that Iran will be "hit hard."

Iran has issued a stern warning in response. Mohammad Bagher Zolghadr, Secretary of Iran's Supreme National Security Council, stated that continued US maritime blockades will force Iran to tighten its control over the Strait of Hormuz and may lead to the closure of other key maritime chokepoints. "This price will be paid by the global economy, energy markets, and American voters," he said.

LNG Tanker Disabled, Tanker Reports Explosion Nearby

According to vessel tracking data compiled by Bloomberg and Kpler, the Gaslog Shanghai completed loading in Qatar around July 27 and stopped transmitting signals near the western entrance of the Strait of Hormuz on July 31. Security advisory firms Vanguard Tech and Marisks have confirmed the vessel's identity. Gaslog, a Greek-based ship management company, did not respond to requests for comment outside of normal business hours.

In a separate advisory on Saturday, the UKMTO disclosed that another oil tanker in the waters near Oman reported seeing a large geyser of water and an explosion in its vicinity. The UKMTO stated it has notified the relevant local coast guard authorities.

West Texas Intermediate crude futures settled more than 3% higher at $86 per barrel, while the international benchmark Brent crude also rose over 1% to close at $90.12 per barrel. However, both benchmarks recorded a weekly decline of more than 5%.

Ceasefire Collapses as Conflict Continues to Expand

In an interview on Wednesday, US President Donald Trump said the US will retaliate following Iranian missile attacks on American forces. He stated that the US will "strike very hard" at Iran. Axios, citing unnamed US officials, reported that Trump is seriously considering striking Iranian energy targets in the coming days but has not yet issued a final order. The Wall Street Journal noted that Trump could still cancel the planned strikes if diplomatic negotiations show progress.

Iran has responded in kind. Zolghadr warned that the US's "maritime blockade and war-mongering" will not only tighten control over the Strait of Hormuz but also lead to the closure of other straits and chokepoints. The US reimposed a maritime blockade on Iranian vessels on July 13, barring them from entering US ports.

Over the past week, the US has completed a "large-scale" strike on multiple targets of Iran's Islamic Revolutionary Guard Corps. In retaliation, Iran attacked US military bases in Kuwait and Bahrain. Kuwait stated that its air defense systems intercepted a drone attack launched by Iran.

Signs of the conflict's spread are also alarming markets. Egypt reported on Thursday that a drone struck two ships at the Mediterranean port of Damietta, causing a fire, with no group claiming responsibility. This marks the first attack on Egyptian soil since the outbreak of the current conflict, raising fears that the Bab el-Mandeb Strait at the southern end of the Red Sea could become a second target for Iran.