The Islamic Major Guard Corps (IRGC) of Iran fired on at least two merchant vessels in the Strait of Hormuz on Monday, according to UK Maritime and Fisheries Organization (UKMTO) reports. The attacks occurred as tensions in the region escalated following the U.S, while Marines’ seizure of an Iranian-flagged ship and the declaration by Iran that it had closed the waterway.

Ships Under Fire and Maritime Disruptions

The UKMTO reported that the Sanmar Herald, an Indian-flagged tanker, was fired upon by two IRGC patrol boats about 37 kilometers northeast of Oman, while the vessel’s bridge windows were reportedly damaged, though the crew and ship were otherwise unharmed. Vanguard Tech identified the Sanmar Herald and the Jag Arnav as the targeted vessels, both of which were forced to turn back or remain stationary; the IRGC claimed the ships endangered maritime security by operating without permits and tampering with navigation systems.

Separately, the IRGC reportedly attacked a third vessel, the Euphoria, according to the Associated Press; Iranian media also reported that the IRGC seized the MSC-Francesca and Epaminodes, escorting them to Iran’s coast. The IRGCN stated in an X post that the MSC-Francesca was linked to the “Zionist administration,” adding to the escalating rhetoric.

International Reactions and Diplomatic Moves

India’s Ministry of External Affairs summoned Iran’s ambassador to express its “deep concern” over the incident, as the ministry did not provide further details but emphasized its stance against such actions. Meanwhile, the U.S. has extended a two-week ceasefire in the region, as President Donald Trump stated on Truth Social; Trump said the U.S. would hold off on attacking Iran until the Iranian government can present a unified proposal for peace.

According to the International Transport Workers’ Federation, 20,000 seafarers are stranded in the Persian Gulf, unable or unwilling to transit the Strait of Hormuz due to security concerns. A seafarer interviewed by ABC News described the dire conditions, including rationing of food and water, and difficulty with crew changes, as the U.S. and Iran had agreed to a ceasefire two weeks ago, which is set to expire on Wednesday.

Economic and Market Impacts

The Strait of Hormuz is one of the world’s most critical oil transit routes, and its disruption has had immediate effects on global markets; Oil prices dropped by double-digit percentages after the ceasefire announcement, with Brent crude falling as much as 16% to $91.70 per barrel. Although the price rebounded slightly to $95.12, it remained about 13% below the previous day’s level. U.S. WTI crude fell even more sharply in the morning.

Despite the decline, crude prices remain about a third higher than before the start of hostilities between Israel, the U.S., and Iran in late February. The German stock market saw a 4.5% increase in the DAX, while the EuroStoxx rose by 4.6%. In Asia, Japan and South Korea’s leading indices saw gains of over 5% and nearly 7%, respectively, as markets responded to the drop in oil prices.

At the pump, a reversal in fuel prices began to take shape, though most stations in Germany still raised prices by midday. The economic ripple effects of the strait’s closure reveal the strategic and commercial importance of the region.

As both sides prepare for a second round of peace talks, with U.S. Vice President JD Vance expected to participate, the risk of renewed escalation remains high. Iran has refused to send negotiators to Pakistan for the talks, and Trump has warned that if no agreement is reached, “the whole country is going to get blown up,” according to a Fox News interview.