Oil Shipments Halt Near Strait of Hormuz as Conflict Escalates
Several major oil companies and trading houses have suspended crude and fuel shipments through the Strait of Hormuz following escalating US and Israeli strikes on Iran and Tehran’s retaliatory actions, according to trading sources cited by Reuters. One senior executive said vessels would remain stationary for several days amid safety concerns. The move underscores the vulnerability of the narrow waterway, one of the world’s most critical energy chokepoints, as tensions threaten to disrupt global supply routes.
Maritime traffic has slowed but not stopped entirely. Bloomberg reported that at least three LNG tankers linked to Qatar — which supplies about 20% of global liquefied natural gas — have paused voyages to avoid the strait, while automated tracking data showed at least 17 oil tankers still transiting as of mid-morning GMT. Several large crude carriers, including the Eagle Veracruz, Front Beauly, and the supertanker Mitake, were reported idling near the Gulf of Oman after news of the attacks, forming a growing cluster of stationary vessels awaiting clearer security conditions.
The Strait of Hormuz carries around 20 million barrels of oil per day — roughly one-fifth of global consumption — along with a similar share of worldwide LNG trade, making any disruption highly consequential. The waterway, bordered by Iran and Oman, is overseen militarily by Iran’s Revolutionary Guard, which has repeatedly threatened closure during periods of conflict. Analysts warn that prolonged disruption could trigger significant spikes in global energy prices, especially since alternative export routes from Gulf producers can handle only a fraction of normal volumes.
Pic Courtesy: google/ images are subject to copyright
