Strait of Hormuz Crisis: Shipping Disruption and Global Economic Impact

The Strait of Hormuz, a critical chokepoint for global oil and gas supplies, remains largely closed as of March 10, 2026, following US-Israeli strikes on Iran on February 28, 2026, and subsequent Iranian retaliation. This disruption represents the largest shipping crisis since World War II, with significant implications for energy markets, global trade, and insurance rates.

Current Situation

Iran closed the Strait of Hormuz in response to the strikes. All commercial shipping is currently suspended. As of March 5, 2026, approximately 3,200 ships, representing 4% of global tonnage, are idle in the Gulf region, including over 100 container ships, which account for 10% of the global fleet [Hormuz Crisis Dashboard]. Ships are reportedly switching off transponders to avoid targeting due to electronic warfare disrupting signals, making accurate ship counts difficult. The crisis severity score is currently rated at 9/10 for military threat and carrier status, 10/10 for insurance impacts, and 10/10 for shipping traffic [Hormuz Crisis Dashboard].

Impact on Oil and Gas Prices

The closure has already driven up oil and gas prices significantly. As of March 5, 2026:

• Brent Crude: $83.74 (+ $11.74, +16.3%) compared to a pre-crisis price of $72.00 [Hormuz Crisis Dashboard]
• WTI Crude: $74.42 (+ $9.42, +14.5%) compared to a pre-crisis price of $65.00 [Hormuz Crisis Dashboard]
• EU Gas (TTF): $48.00 (+ $18.00, +60.0%) compared to a pre-crisis price of $30.00 [Hormuz Crisis Dashboard]
• US Gasoline: $3.19 (+ $0.22, +7.4%) compared to a pre-crisis price of $2.97 [Hormuz Crisis Dashboard]

The EU has called a gas supply group meeting in response to the conflict and potential energy supply issues [Reuters].

Shipping Carrier Responses

Major shipping lines have suspended operations through the Strait of Hormuz. Key carrier responses include:

• Maersk: Suspended all Hormuz transits and halted bookings for the UAE, Oman, Iraq, Kuwait, Qatar, Bahrain, and Saudi Arabia (Dammam/Jubail). Trans-Suez via Bab el-Mandeb is also paused. 14 vessels (70K TEU) are trapped [Hormuz Crisis Dashboard].
• MSC: Declared ‘End of Voyage’ for all Gulf-bound cargo and suspended all worldwide bookings to the Middle East. 15 ships (109K TEU) are trapped [Hormuz Crisis Dashboard].
• CMA CGM: Ordered all vessels to shelter and suspended Suez transits. Most of the fleet has been diverted, with only the APL Holland still showing a Gulf destination. One vessel is trapped [Hormuz Crisis Dashboard].
• Hapag-Lloyd: Suspended all Hormuz transits and stopped bookings for Upper Gulf countries [Hormuz Crisis Dashboard].

Carriers are implementing emergency surcharges ranging from $1,500 to $4,000 per TEU [Hormuz Crisis Dashboard].

Background

The crisis began on February 28, 2026, following joint military strikes by the United States and Israel on Iran, which resulted in the death of Iran’s supreme leader, Ali Khamenei [Wikipedia]. Iran responded with missile and drone attacks on US military bases and Israeli targets. Eight seafarers have been killed, and at least four tankers have been damaged [Wikipedia]. One port worker was killed and two injured in Bahrain [Wikipedia].

Looking Ahead

The situation in the Strait of Hormuz remains highly volatile. The duration of the shipping disruption and its long-term economic consequences will depend on the outcome of diplomatic efforts and the de-escalation of military tensions in the region. Continued monitoring of ship traffic, oil prices, and carrier responses is crucial for assessing the evolving impact of this crisis.