Quick Read
- Oil tankers are pausing operations in the Strait of Hormuz following US-Israel strikes on Iran and Tehran’s retaliatory missile launches.
- Several crude and fuel cargoes are on hold, with vessels avoiding entry into the strategic waterway.
- Brent crude prices have already climbed, and a prolonged crisis could push them above $100 per barrel.
- The US Fifth Fleet’s service center in Bahrain reportedly came under missile attack.
- Emirati company Dana Gas suspended natural gas exports from a key field in northern Iraq.
DUBAI (Azat TV) – Global oil markets are facing heightened uncertainty as numerous crude and fuel tankers have begun pausing their transit through the strategic Strait of Hormuz. This critical slowdown comes in the wake of escalating military actions across the Gulf, including coordinated US-Israeli strikes on Iranian targets and subsequent retaliatory missile launches by Tehran, signaling a significant disruption to international energy flows.
Trading sources, including a senior executive at a major trading desk, confirmed to Reuters that several large crude and fuel cargoes were placed on hold, with vessels expected to remain stationary for several days. Bloomberg tracking data further illustrated the situation, showing that while the waterway technically remained open, numerous tankers were avoiding entry, leading to a gathering of vessels both inside and outside the narrow passage. Naval observers noted that maritime traffic had not ceased entirely, but traders were closely monitoring for potential disruptions to ports or energy infrastructure.
Oil Tankers Halt Amid Regional Escalation
The immediate catalyst for this maritime caution was a series of intense military exchanges. On Saturday, US President Donald Trump authorized a joint US-Israeli operation targeting Iranian regime sites and military facilities across Iran, making good on earlier warnings regarding Iran’s nuclear program. Tehran swiftly responded with missile launches towards Israel and issued warnings of further strikes against regional locations if attacked. The US Fifth Fleet’s service center in Bahrain was reportedly hit by a missile attack, with video footage showing smoke near the island state’s coastline as sirens sounded, according to Turkiye Today.
Beyond oil shipments, critical energy infrastructure in the wider region has also faced precautionary shutdowns. Emirati company Dana Gas announced the suspension of natural gas exports from the Khor Mor field in northern Iraq, which is a key supplier to most power stations in the area. This immediate response underscores the pervasive fear of broader regional instability impacting energy production and distribution.
Strategic Strait of Hormuz Under Renewed Pressure
The Strait of Hormuz, linking the Gulf to the Indian Ocean, is an indispensable chokepoint for seaborne oil and liquefied natural gas (LNG). Situated between Iran and Oman’s Musandam exclave, its narrowness—approximately 50 kilometers (30 miles)—and shallow waters make it particularly vulnerable to disruption. According to the US Energy Information Administration (EIA), about one-fifth of global oil and petroleum product consumption, averaging 20 million barrels per day in 2024, transits through this strait. Additionally, roughly one-fifth of the global LNG trade, primarily from Qatar, also uses this corridor.
Key OPEC exporters, including Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq, rely heavily on Hormuz for shipping most of their crude, largely to Asian markets. While Saudi Arabia and the UAE possess limited infrastructure to bypass the strait, their capacity—around 2.6 million barrels a day—is insufficient to mitigate a major closure. The EIA has previously warned that ‘Large volumes of oil flow through the strait, and very few alternative options exist to move oil out of the strait if it is closed.’
Global Energy Market Braces for Impact
The market reaction to the escalating tensions has been immediate and significant. Brent crude prices had already climbed more than 20% since the start of the year, reaching $72.90 per barrel by Friday’s close. Market estimates now suggest that a prolonged crisis leading to a blockade of the strait could push Brent crude well above $100 per barrel. In response, OPEC+ may consider a larger-than-planned output increase at its upcoming meeting, with Saudi Arabia and the United Arab Emirates reportedly already lifting exports in anticipation of potential fallout, according to Reuters.
Iran’s Revolutionary Guard, the ideological arm of its military, maintains control over naval operations in the Gulf and the Strait of Hormuz. Tehran has a history of threatening to close the strait during times of crisis, though it has never fully acted on these threats. However, past incidents, such as the ‘Tanker War’ during the Iran-Iraq War in the 1980s and more recent ship seizures—including the Portuguese-flagged container ship MSC Aries in April 2024—underscore the persistent risks in the waterway. Western naval forces have repeatedly warned ships to avoid Iranian waters in the strait since 2018, when the United States withdrew from the landmark nuclear deal with Iran.
The current hesitation of oil tankers in the Strait of Hormuz highlights the immediate and tangible impact of geopolitical tensions on global energy security. This direct response by commercial shipping, coupled with precautionary energy infrastructure shutdowns, signals a critical juncture where regional military actions translate directly into market instability and supply chain vulnerabilities, underscoring the strait’s unparalleled strategic importance.