Container ship reportedly struck by projectile near Iranian island near entrance to Strait of Hormuz

The British military's Maritime Trade Operations Center said Tuesday that a container ship was hit by an "unknown projectile which has caused damage above the waterline" off the coast of Iran's Kish Island, near the western entrance to the Strait of Hormuz.

"The crew are safe and accounted for. No environmental impact has been reported. Authorities are investigating," the UKMTO said in its alert.

Iran has maintained a de facto blockade of the vital shipping lane off its western coast in retaliation for the war launched by Israel and the U.S. on Feb. 28. It has allowed some ships to transit the strait, reportedly collecting hefty fees as they pass by another island that analysts say Tehran is effectively using as a "toll booth," but none linked to the U.S. or Israel.

Overall commercial traffic through the strait, through which a fifth of the world's crude oil supply is typically carried on tankers, has been severely reduced since the war began, sending global oil prices skyrocketing. 

International benchmark Brent Crude was trading at or above $110 a barrel on Tuesday, ahead of President Trump's deadline for Iran to reopen the strait. He has threatened to ramp up the war significantly if that doesn't happen, with attacks to destroy Iran's power plants and bridges.

Iran has threatened to respond in kind, knocking out power to U.S. allies across the Persian Gulf.