Iran Blockades Strait of Hormuz Amid US-Israeli War

Following coordinated military strikes by the United States and Israel on February 28, 2026, which killed Supreme Leader Ali Khamenei, Iran implemented a near-total blockade of the Strait of Hormuz. This action disrupted approximately 20% of global oil and LNG supplies, causing Brent crude prices to surge above $120 per barrel and triggering the largest supply disruption in the history of the global oil market. The crisis extended to critical non-oil commodities, halting roughly one-third of global fertilizer trade and threatening global food security.

Tehran shifted from a total blockade to a restrictive "toll booth" regime, requiring vessels to undergo vetting and pay fees, reportedly up to $2 million in Chinese yuan or stablecoins, to use a designated corridor near Larak Island. While Iran granted selective passage to "friendly" nations—including China, India, and Russia—it prohibited vessels linked to the U.S. and Israel. This stalemate stranded approximately 20,000 seafarers aboard 2,000 vessels in the Persian Gulf, creating a humanitarian crisis characterized by food and water shortages.

President Donald Trump responded by blockading Iranian ports and threatening strikes on energy infrastructure, though he later pivoted to diplomatic efforts and a fragile ceasefire. In May 2026, Iran expanded its operational control to a 500-kilometer "Operational Crescent." To counter the blockade, a multinational mission led by the UK and France, supported by Australia, began deploying naval and surveillance assets to secure freedom of navigation.