Oil Shipments in Persian Gulf Already Disrupted by Iran Attack

Oil markets and global shipping routes have been thrown into disarray following the recent U.S. and Israeli military strikes on Iran, with major disruptions already reported in the Persian Gulf — a region that handles a substantial share of the world’s energy exports. The attacks have sent shockwaves through global shipping, forcing oil companies and tanker operators to halt or reroute shipments, at least temporarily, raising questions about supply security and broader economic impact.
Strait of Hormuz Under Strain
At the centre of the disruption is the Strait of Hormuz, a narrow waterway between Iran and Oman that links the Persian Gulf to the Gulf of Oman and the open sea. It is one of the most strategically important maritime chokepoints in the world: roughly 20% of global crude oil and a similar share of liquefied natural gas (LNG) exports pass through it every day.
In the aftermath of the strikes, Iranian authorities — including elements of the Islamic Revolutionary Guard Corps — reportedly broadcast radio warnings telling all vessels that no ship is allowed to pass through the strait, effectively asserting a ban on navigation through the key trade route. Although these broadcasts are not legally binding, they have dramatically raised fears among shipowners and insurers alike.
Shipping Suspensions and Vessel Backups
Major oil companies, global trading houses, and tanker operators have responded by suspending shipments of crude oil, refined fuels, and LNG through the Strait of Hormuz. Several vessels that were en route are now idling near ports such as Fujairah in the United Arab Emirates, with satellite tracking imagery showing congestion at key anchorage points.
A top trading desk executive told Reuters that many ships are expected to remain in port for several days until the situation stabilises. Additionally, international advisories from naval and maritime security bodies — including warnings that the U.S. Navy cannot guarantee safe passage through the region — have prompted Greek, British, and Japanese ship owners to recommend avoiding the Persian Gulf, Gulf of Oman, and Hormuz until further notice.
Japanese shipping companies, among others, have temporarily halted operations in the region, instructing crews to stay in safer waters as a precaution, since there are no viable alternative routes for the vast quantities of oil that typically transit the strait.
Impact on Oil Markets
The disruptions present significant risks to global energy markets. Because such a large share of crude and LNG shipments passes through the strait, any sustained interruption — even temporarily — has the potential to tighten supply, drive up wholesale prices and increase volatility in energy derivatives markets.
Traders and analysts have already noted sharp increases in war-risk premiums for tankers operating in the region, with some insurers cancelling policies or raising costs sharply to reflect heightened risk. War-risk insurance prices in the Gulf and Hormuz corridor could increase by up to 50%, significantly raising the cost of transporting oil by sea and reflecting growing concern about the possibility of a broader conflict extending to commercial shipping.
Broader Logistical and Economic Consequences
Even before a potential full closure of the strait, tanker operators are making decisions that will have ripple effects on shipping schedules and supply chains. Some vessels have halted or reversed course, while others are delaying entry into the area altogether. According to tracking data, some tankers carrying crude from Gulf producers like Saudi Arabia, Iraq, and the UAE have stopped outside the Gulf of Oman rather than risk navigating a contested waterway.
Experts warn that the longer these conditions persist, the more likely it is that buyers will seek alternative supply routes or sources, which could involve lengthier voyages around the southern tip of Africa or other strategic adjustments — all of which are costlier and slower. That, in turn, could put upward pressure on refined fuel and shipping costs globally.
Regional Dynamics and Future Risk
Why the disruption is taking place now is directly tied to the broader military confrontation involving Iran, the United States, and Israel — hostilities that have introduced new layers of risk into maritime trade. Tehran’s reprisals, warnings to shipping, and the perceived risk of escalation are collectively affecting operational decisions by energy companies and shipowners.
The situation also highlights the geopolitical sensitivity of the Strait of Hormuz: any escalation that is perceived to threaten security along this narrow sea lane almost immediately resonates in oil markets and the global economy at large. Policymakers and oil market watchers are closely monitoring developments, especially as the impact of sustained disruptions could extend far beyond the region.