• NATO allies are debating collective military options to reopen the Strait of Hormuz, but face internal divisions over a formal mission.
  • Iran's closure of the strait has slashed traffic to a trickle, controlling roughly 20% of global oil supply and triggering fuel shortages and price surges worldwide.
  • The standoff tests NATO unity amid U.S. pressure for a naval coalition, with European and Asian partners prioritizing diplomacy over military involvement.

NATO Secretary General Mark Rutte confirmed on Thursday that allies are discussing collective options to reopen the Strait of Hormuz, as Iran's effective closure of the vital waterway enters its third week. The blockade, marked by Iranian attacks on vessels and mine threats, has reduced maritime traffic to a bare minimum, handing Tehran unprecedented control over a key chokepoint for global energy flows.

Efforts to form a coordinated response have hit a snag, with U.S. President Donald Trump pressing NATO partners to join a naval coalition for ship escorts. Trump has warned of alliance consequences if they refuse, but UK Prime Minister Keir Starmer has already ruled out a formal NATO mission, instead calling for a "viable plan" with partners. According to people familiar with the matter, EU leaders and nations like Japan and Australia are showing reluctance, leaning toward diplomatic channels to avoid military entanglement in a widening Middle East conflict.

"What we're focused on is regulatory stability and de-escalation," said one European diplomat, who requested anonymity due to the sensitivity of ongoing talks. "Italy in this regard has been on a very steady growth trajectory, but this crisis threatens that." The closure has exacerbated a global energy crisis, with oil market volatility intensifying and experts noting long-term risks to Middle East stability. In Asia and Europe, fuel shortages and production cuts are mounting, while Africa faces soaring energy costs that could deepen economic strains.

Behind the scenes, the political context is equally fraught. Trump's demands are testing NATO unity, as UK military experts point out that Article 5 does not cover this "war of choice." EU foreign policy chief Kaja Kallas emphasized that member states are discussing readiness, but without consensus on action. Iran, for its part, has limited the closure to "enemies," though its attacks have included drone strikes that recently grounded flights at Dubai Airport, according to local reports. In Lebanon, officials cite 850 deaths from related Israeli actions, highlighting the human toll of the broader conflict.

Historically, the strait has faced threats—like Iran's 2019 tanker seizures—but this full closure marks a significant escalation in the current U.S.-Iran-Israel conflict that began in early March 2026. Without a deal, the situation could force broader economic shocks, with two-thirds of surveyed experts predicting prolonged instability. Reopening seems unlikely without an Iran truce, as few allied ships may not counter threats effectively, per analysts. For now, stakeholders are bracing for short-term oil spikes, while EU explores non-military aid options amid Trump's broader NATO appeals.

Correction: An earlier version of this article misstated the timeline of the conflict; it began in early March 2026, not late February.