Strait of Hormuz halts after US‑Israel assault on Iran | EUROtoday

The United States and Israel launched an assault on Iran on Saturday (February 28), an escalation that would result in the closure of the Strait of Hormuz, a significant oil transport route on the mouth of the Persian Gulf.

Iran has repeatedly threatened to shut the strait, signalling that it might probably disrupt the important maritime artery that carries a fifth of the world’s oil consumption. But Tehran has by no means adopted via on its threats to shut off entry to the strait utterly, as this might stop it from transport its personal oil overseas and would seemingly provoke a fast worldwide response.

If Iran have been to comply with via on its risk, oil costs might rise sharply, which might deal an enormous blow to the worldwide economic system. In February, oil costs rose to their highest ranges in months as merchants anxious in regards to the penalties of US army strikes on Iran.

On Saturday, visitors via the Strait of Hormuz successfully got here to a halt, as a number of oil shippers and merchants suspended vitality shipments via the waterway, amid security issues and warnings from the authorities.

“This appears to be driven by heightened tensions and precautionary decisions by ship operators and insurers rather than a confirmed physical blockade by Iran,” Jorge Leon, senior vice chairman and head of geopolitical evaluation at Rystad Energy, wrote in a observe to shoppers. “From a market perspective, however, the distinction is secondary. Whether the Strait is closed by force or rendered inaccessible by risk avoidance, the impact on flows is largely the same.”

Why does the Strait of Hormuz matter?

The Strait of Hormuz is a key waterway that lies between Oman and Iran, and connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.

The US Energy Information Administration (EIA) describes it because the “world’s most important oil transit chokepoint.”

At its narrowest level, the waterway is simply 33 kilometers (21 miles) extensive, with the transport lane simply 2 miles extensive in both course, making it crowded and threatening.

Large volumes of crude extracted by OPEC nations like Saudi Arabia, the United Arab Emirates, Kuwait and Iraq from oil fields throughout the Persian Gulf area and consumed globally circulation via the strait.

Around 20 million barrels of crude, condensate and fuels are estimated to circulation by way of the waterway day by day, in response to information from Vortexa, an vitality and freight market guide.

Qatar, one of many world’s largest producers of liquefied pure gasoline (LNG), depends closely on the strait to ship its LNG exports.

Any lasting blockade or disruptions to grease flows might set off a pointy spike in crude costs and hit vitality importers arduous, notably in Asia.

Strait of Hormuz in focus throughout previous tensions

The waterway was additionally within the highlight throughout final yr’s battle between Israel and Iran.

During the 12-day battle in June, nonetheless, there weren’t any main assaults on business transport within the area.

But shipowners have been cautious of utilizing the waterway, and a few vessels tightened safety whereas others canceled routes there through the battle.

Electronic interference with business ship navigation techniques surged across the waterway and the broader Gulf throughout final yr’s confrontation, naval sources informed Reuters information company.

Who will probably be most affected in case of provide disruption?

The EIA estimates that 82% of crude and different gas shipments that traversed the strait went to Asian customers.

China, India, Japan and South Korea have been the highest locations, with these 4 nations collectively accounting for practically 70% of all crude oil and condensate flows that traversed the strait.

These markets would seemingly be most affected by provide disruptions.

How will a closure have an effect on Iran and Gulf states?

An extended-term closure might additionally jeopardize Tehran’s ties with Gulf Arab states like Saudi Arabia and the United Arab Emirates — nations with which Iran has painstakingly improved relations in recent times.

Moreover, Tehran itself depends on the Strait of Hormuz to ship oil to its export companions similar to China, making it counterproductive to shut the strait, say consultants.

Are there alternate options to the Strait of Hormuz?

Gulf Arab nations like Saudi Arabia and the UAE have sought various routes to bypass the strait in recent times.

Both nations have arrange infrastructure to move a few of their crude by way of different routes.

Saudi Arabia, as an example, operates the East-West Crude Oil Pipeline with a capability of 5 million barrels per day, whereas the UAE has a pipeline linking its onshore oil fields to the Fujairah export terminal on the Gulf of Oman.

The EIA estimates that round 2.6 million barrels of crude per day may very well be obtainable to bypass the Strait of Hormuz within the occasion of disruptions within the waterway.

Edited by: Uwe Hessler

Editor’s observe: This article was first printed on June 18, 2025, and up to date on March 1, 2026, to replicate US strikes on Iran and the efficient halt of visitors via the strait.