Iran’s IRGC has effectively blockaded the Strait of Hormuz, threatening to target any vessel in the waterway. Global shipping has plummeted by 70% as oil prices surge amid the escalating conflict. Iranian officials have announced the closure of the Strait of Hormuz, a critical global chokepoint for oil and gas shipments. The Islamic Revolutionary Guard Corps (IRGC) has warned that any ship attempting to pass through the strait will be targeted and "set on fire," according to multiple reports from Iranian state media and international sources.
The announcement follows joint U.S.-Israeli airstrikes on Iran that began on February 28, 2026, including the assassination of Supreme Leader Ali Khamenei, prompting retaliatory Iranian missile and drone attacks on U.S. bases and Israeli territory. Vessels in the region have reported receiving VHF radio warnings from the IRGC prohibiting navigation through the strait "until further notice."
As a result, commercial ship traffic has plummeted by 70% or more, with over 150 tankers and other vessels anchoring on either side of the strait, effectively halting transit. The Strait of Hormuz, connecting the Persian Gulf to the Gulf of Oman, handles about 20% of the world's oil supply and a similar share of liquefied natural gas. At least three tankers have been damaged in recent attacks, with one seafarer killed, heightening risks for maritime operators.
Major maritime insurers have begun canceling war risk coverage for vessels in the Gulf and adjacent waters, effective March 5, further deterring passage. While Iran's Foreign Minister Abbas Araghchi stated that Tehran has no intention of officially closing the waterway, the threats and de facto blockade have already disrupted global supply chains. Oil prices surged 8% today, with Brent crude trading in the high $70s, and analysts warn of potential spikes above $100 per barrel if the closure persists. (Read More)
