Towage, salvage impacted by Middle East war

War in the Middle East has left damaged ships, ports, terminals and energy complexes, a destroyed tug, dead seafarers, thousands of stranded vessels and sky-high oil, gas and fuel prices.

In an increasingly turbulent and conflicted world, salvors are facing dangerous operational challenges, ports are impacted by changing maritime trades, and tug owners are tackling rising fuel costs.

By mid-March, US, Israeli and Iranian forces were attacking the shipping and energy sectors daily. The Strait of Hormuz, between Iran and Oman, was shut to most shipping, with ship operators and owners reluctant to sail through these strategic waters.

An almost inexhaustible stockpile of deadly projectiles seemed ready to strike maritime and energy assets in the Middle East, with no sign of the attacks ending.

Damage was reported in Iraq, Iran, Kuwait, Bahrain, Saudi Arabia, Qatar, the United Arab Emirates and Oman, resulting in drifting, burning and damaged ships, adding to the navigation hazards that may also include mines.

This dire situation is unlikely to be resolved quickly without a ceasefire on both sides or naval escorts through the strait, and until that happens, oil will remain trapped in the Gulf, and fuel prices will continue to increase.

Oil prices will likely exceed the record levels last seen in 2008, of US$145/barrel, and the sustained prices of more than US$100 encountered in 2011-2014, which both led to huge fuel cost hikes and economic recessions, which could easily happen this year. There is no positive sentiment, just worst-case scenarios.

"Damaged ships will likely be left drifting and suffer further structural failures"

Damaged ships lead to salvage opportunities, but the risks to emergency services of taking these jobs was demonstrated when Iranian projectiles struck Mussafah 2 as it was sailing to assist a drone-damaged container ship in the Strait of Hormuz. 

Four seafarers were killed and three injured when the 2012-built tug was attacked north of Oman on 6 March 2026 as it attempted to reach Malta-flagged Safeen Prestige.

Until salvors can be protected, damaged ships will likely be left drifting and suffer further structural failures, risking sinking, grounding and collisions.