Iran Blockades Strait of Hormuz and Attacks Gulf Energy Hubs

Following a February 28 military offensive by the U.S. and Israel that killed Supreme Leader Ayatollah Ali Khamenei, Iran has effectively blockaded the Strait of Hormuz, disrupting roughly 20% of global oil and LNG supplies. Tehran has targeted regional energy infrastructure to dismantle alternative export routes, striking refineries in Bahrain, LNG plants in Qatar, and Aramco sites in Saudi Arabia. Iran maintains these actions are "legitimate self-defense" and has specifically targeted the United Arab Emirates, launching over 2,000 projectiles since the war began.

In the UAE, Iranian drone strikes forced the suspension of operations at the Shah gas plant and caused repeated fires at the port of Fujairah, the nation's primary export terminal outside the strait. These attacks, combined with the blockade, halved the UAE's daily oil output. The UAE briefly closed its national airspace on March 17 after intercepting hundreds of missiles and drones, including strikes near Dubai International Airport. Saudi Arabia has diverted crude to the Red Sea via the East-West pipeline, though Iran and Houthi proxies have threatened to close the Bab el-Mandeb strait to trap tankers.

President Donald Trump has responded by authorizing bombing raids on Iran's Kharg Island and proposing U.S. naval escorts to secure the waterway. He stated the war would end "very soon," though Iranian naval leadership warned that U.S. fleets would be halted by missiles and suicide drones. To mitigate a global supply shock that saw Brent crude exceed $103 per barrel, the International Energy Agency and U.S. Department of Energy have coordinated the release of hundreds of millions of barrels from strategic reserves.