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More than 200 vessels stranded around the world’s most important energy chokepoint
The conflict involving Iran, the United States and Israel is rapidly developing into a major international energy and maritime crisis as shipping through the Strait of Hormuz remains severely disrupted.
Iran has declared the strategic waterway closed and warned vessels against attempting to pass through it following U.S. and Israeli attacks that began on Feb. 28.
The Strait of Hormuz connects major Gulf energy producers with the Arabian Sea and is normally responsible for roughly one-fifth of global oil flows.
Tankers remain stranded
Commercial shipping around the Gulf has slowed sharply.
More than 200 tankers and other vessels have been stranded or forced to wait outside normal shipping routes, while several ships have been attacked since the conflict began.
The growing risks have caused war-risk insurance costs to rise dramatically and have led shipping companies to reconsider routes through the Gulf.
Only a limited number of vessels have reportedly attempted passage through the strait.
Gulf energy producers face increasing pressure
The disruption is already affecting major oil and gas producers.
Qatar has faced difficulties with LNG exports, while Iraq has reduced oil production because storage facilities are filling as tankers remain unable to load normally.
Saudi Arabia, Kuwait and the United Arab Emirates are also examining alternative export routes and measures to protect their energy infrastructure.
The United States has said it is prepared to support commercial shipping and ensure that energy supplies continue to reach international markets.
Impact extends beyond oil
The crisis is not limited to energy.
The Gulf is also an important route for container shipping and air cargo connecting Asia, Europe and the Middle East.
Longer maritime routes around Africa could increase transportation costs for manufactured goods, food, pharmaceuticals and industrial materials.
The longer the disruption continues, the greater the risk that the conflict will affect global inflation and supply chains.
The Strait of Hormuz crisis therefore demonstrates how rapidly a regional military confrontation can develop into a global economic challenge.
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