• Oil and gas tankers are avoiding or pausing in the Strait of Hormuz due to heightened security risks from US and Israeli strikes on Iran, leading to reduced traffic and idling supertankers.
  • The disruption has halted shipments of crude and LNG, affecting about 20% of global seaborne oil and one-fifth of LNG trade, and boosted West Texas Intermediate prices by approximately 12% to $75.33.
  • Iranian naval warnings and US military advisories are prompting major operators like Japan's Nippon Yusen (9101.T) and Greece's merchant fleet to reroute or reassess voyages, with no full closure of the strait reported yet.

Oil and gas tankers are steering clear of the Strait of Hormuz in the wake of US and Israeli strikes on Iran, with many vessels turning back or idling outside the waterway. This slowdown marks the first major shipping disruption from the recent escalation, as a broadcast allegedly from the Iranian navy banned passage, though the strait remains technically open. According to people familiar with the matter, at least eight tankers are paused near the Gulf of Oman, including those carrying Saudi, Iraqi, and Emirati crude, while three Qatar-bound LNG carriers have halted voyages—Qatar supplies roughly 20% of global LNG, all via Hormuz.

Efforts to maintain maritime trade have hit a snag, with traffic sharply reduced despite over 750 commercial vessels being inside the strait during the strikes. The US has warned vessels to stay 30 nautical miles from its military assets, including the USS Gerald R. Ford and USS Abraham Lincoln, deployed in what's described as the largest naval surge since 2003. Without a swift resolution, the company would be forced into costly reroutes, as limited bypass options like Saudi Arabia's East-West pipeline offer little relief. Greece has advised its flagged ships to avoid the area, and insurance costs are rising as crews are advised to exercise maximum vigilance.

In late February 2026, at least 17 oil tankers continue transiting in both directions, but many others—such as the Eagle Veracruz with Iraqi crude for China and the Front Beauly (FRO) with Saudi crude—have halted or slowed near the Gulf of Oman. The Iranian Navy's broadcasts on VHF Channel 16 claimed the strait was closed, prompting warnings from the UK Maritime Trade Operations, though no full shutdown has occurred. This selective pausing is boosting freight rates and inflation risks for global markets, with fears alone potentially adding $10 to $20 per barrel to oil prices. Asian economies face the highest exposure, as the strait handles around 20 million barrels per day of crude, mostly bound for China, India, Japan, and South Korea.

Political tensions are simmering, with Iran's Islamic Revolutionary Guard Corps overseeing Gulf naval operations and having threatened closure in January 2026 pre-strikes. Recent temporary partial closures for drills preceded this escalation, highlighting the strait's role as a US-Iran flashpoint. Tehran has retaliated, and trading desks signal multi-day halts, but experts predict volatility with eventual resumption as US naval superiority is expected to restore security. Broader Gulf security risks have escalated dramatically, with Qatar and Bahrain implementing terminal suspensions and IRGC drills adding to the uncertainty.

Correction: An earlier version of this article misstated the number of idling tankers; it is at least eight, not ten, based on updated reports.