US and Iran Exchange Strikes as Hormuz Shipping Declines

The Government of Iran and the United States entered a cycle of military strikes and maritime blockades in late June 2026, severely disrupting traffic through the Strait of Hormuz. The escalation began as Iran asserted its right to control navigation, with the Islamic Revolutionary Guard Corps forcing three foreign tankers to turn back for unauthorized transit. These actions followed a joint call for unimpeded navigation by the U.S. and six Gulf states.

Hostilities intensified over the weekend of June 27-28, with U.S. retaliatory strikes following an attack on the container ship Ever Lovely, and subsequent Iranian strikes on U.S. assets. An unidentified projectile also struck a Qatari oil tanker, prompting naval authorities to raise the regional threat level to substantial. The International Maritime Organization warned that approximately 80 mines may be present in the strait, though some Indian-flagged cargo ships continued to transit the area.

The conflict caused significant economic volatility, with Brent crude prices rising 60% in a single month and global supply dropping by 12 million barrels per day. While Saudi Arabia and the United Arab Emirates used pipelines to bypass the strait, other regional states suffered massive revenue losses. Market analysts suggest the price spikes reflect a geopolitical risk premium rather than a fundamental supply shortage, predicting prices may stabilize between $70 and $80 per barrel as strategic reserves are utilized.