The Strait of Hormuz is a narrow but extremely important waterway between Iran and Oman through which about 20 % of the world’s oil and gas supply normally passes by ship. It is one of the most important chokepoints for global energy trade.

In late February 2026, after intense U.S. and Israeli strikes on Iran, including strikes on key Iranian targets, Iran began broadcasting warnings that no ships were allowed to pass through the strait. Many vessels turned back or stayed outside the area because of the risk, and maritime insurers withdrew war-risk coverage, effectively bringing normal traffic to a halt.

By early March 2026, senior Iranian officials made the warning even stronger, saying the Strait of Hormuz was closed and threatening to attack or set on fire any ship that tried to pass through the route. These statements came as part of Iran’s retaliation against foreign strikes, with the IRGC saying they would defend the waterway and assert control.

The disruptions have already hit global oil and gas markets. Oil prices have surged, and freight and insurance costs have climbed sharply because tankers are avoiding the area. Some oil exporters have had to reduce output because their tankers cannot leave the Gulf. This has raised fears of broader supply shortages and higher fuel costs for countries around the world.

Governments and trading partners have expressed concern and called for de-escalation, but the situation remains fluid and tense. Decisions by ships, insurers, and governments in the coming days will shape how long the disruption continues and how severely it affects global energy supplies.

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