US and Iran Blockade Cripples Strait of Hormuz Shipping

Global energy security faces critical risks as the United States and Iran engage in a naval blockade and military conflict in the Strait of Hormuz. The waterway, which typically handles one-fifth of global energy shipments, has seen traffic plummet to 1.27 percent of pre-conflict averages. On July 17, only three commodity vessels transited the strait, with liquefied natural gas and very large crude carriers completely absent for two consecutive days.

The disruption follows U.S. and Israeli strikes on Iran starting February 28, leading the U.S. to resume a naval blockade of Iranian ports. Iranian forces have responded by striking commercial vessels, including the UAE-flagged supertankers Mombasa and Al Bahiyah on July 12. The Islamic Revolutionary Guard Corps declared that oil and gas exports will cease as long as U.S. attacks continue, and Tehran has threatened to incite Houthi allies to close the Bab al-Mandeb Strait.

International Energy Agency Director Fatih Birol described the situation as the worst energy disruption in history, noting that developing nations in Asia are facing severe health risks due to unaffordable fuel. While the IEA coordinated a release of 400 million barrels of oil to moderate price spikes, Birol warned that such measures are temporary. Meanwhile, the International Maritime Organization reported that war risk insurance premiums have surged from 0.15 percent to 5 percent, and approximately 9,000 seafarers remain stranded in the Persian Gulf.