Global shipping through the Strait of Hormuz has slowed dramatically amid escalating tensions in the Middle East, raising concerns about disruptions to international trade and energy markets. The narrow waterway normally crowded with oil tankers and cargo vessels has seen traffic decline sharply as security risks intensify.
Recent military strikes by the United States and warnings from Iran about potential attacks on ships have significantly increased the dangers of navigating the vital maritime corridor. As a result, many shipping companies have opted to avoid the route altogether. According to ship-tracking platform MarineTraffic, tanker traffic passing through the strait on Wednesday was down nearly 90 percent compared with levels recorded just a week earlier. Instead of moving through the channel, dozens of vessels have gathered outside the strait while operators assess the risks.
In response to the slowdown, U.S. President Donald Trump announced on his Truth Social platform that the U.S. Navy could escort commercial tankers through the waterway if necessary. However, shipping activity has yet to recover, and it remains uncertain whether any vessels have accepted the offer of military protection.
Security experts say naval escorts could help reduce the risk for individual ships but would be difficult to implement on a large scale. Jakob Larsen, chief safety and security officer at the global shipping organization BIMCO, noted that protecting every tanker in areas threatened by Iran would require a vast number of warships and other military resources.
Meanwhile, the disruption has already forced more than 150 vessels including oil and liquefied natural gas carriers to either anchor offshore or reroute their journeys, according to insurance broker Marsh McLennan. Insurance coverage has also become a major hurdle. Some insurers have withdrawn war-risk protection, while others have sharply increased premiums. Marsh reported that war-risk insurance costs have jumped from roughly 0.25 percent to 1.25 percent of a vessel’s value, with further increases expected if tensions escalate.
The administration has attempted to ease these concerns by directing the U.S. International Development Finance Corporation to help provide insurance support for ships traveling through the Gulf. The agency said it plans to work with shipowners, charterers, and maritime insurers to maintain stable trade flows and reduce market disruption.
The strategic importance of the Strait of Hormuz makes the slowdown especially significant. Roughly one-fifth of the world’s oil supply passes through the corridor each day, along with key commodities such as aluminum, sugar, and fertilizer. With shipments stalled, energy markets have already reacted.
Average gasoline prices in the United States climbed to about $3.19 per gallon this week, according to the American Automobile Association (AAA), marking a sharp increase from the previous week. As crude oil prices approach $80 per barrel, analysts warn that sustained shipping disruptions could further push up fuel costs, add pressure to inflation, and strain global economic growth.
