Iran effectively shut down the world’s most critical oil chokepoint on Saturday, but some tankers are still pushing through
“Iran, Tehran, Milad Tower” by Hamed Saber, CC BY 2.0.
Gas prices are going to skyrocket.
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Iran has effectively closed the Strait of Hormuz, the critical waterway linking the Persian Gulf to the open seas, after the US and Israel bombed Iran on February 28. Iranian media is describing the waterway as “practically closed,” which is a major development for global trade and energy markets.
According to Bloomberg, ships in the area picked up a radio broadcast, reportedly from the Iranian navy, announcing that transit through the waterway is now banned. Several tankers that were heading toward Hormuz turned around, and others paused near the entrance after the bombing started. There has been no formal announcement from Tehran yet.
The disruption is affecting not just crude oil tankers, but also container ships carrying everyday goods. The Strait of Hormuz is one of the world’s most important chokepoints, with roughly a fifth of the world’s seaborne oil and liquefied natural gas (LNG) passing through it every day.
The closure is already shaking up global shipping, but some vessels are still getting through
Iran’s semi-official Tasnim news agency described the waterway as effectively shut, and the country’s Revolutionary Guard warned ships that passing through Hormuz is not safe. German shipping company Hapag-Lloyd AG confirmed it is suspending transits through Hormuz due to its “official closure.” Separately, Iran has also claimed to be receiving encouraging signals from ongoing US talks, even as tensions on the ground continue to escalate.
Despite the slowdown, some oil and gas carriers appeared to continue their journeys on Saturday afternoon. Tracking systems showed one large oil tanker leaving the Persian Gulf through the strait, and another making the passage in the opposite direction by 8 PM London time, far fewer than normal, but still moving.
The supertanker Shaden, carrying Saudi crude, halted its approach to the strait. However, the Chinese-owned New Vision appeared to continue its outward transit, though its speed data was erratic. The large crude carrier KHK Empress, partly loaded with Omani crude, made a U-turn and changed its destination to New Mangalore in India. Another tanker, Desh Abhimaan, also appeared to U-turn mid-transit.
Japanese shipping giant Nippon Yusen KK told its fleet to avoid Hormuz, and Greece advised its merchant fleet to reassess passage. The US also issued a warning advising vessels to stay 30 nautical miles away from its military assets.
Adding to the concern, Trump has previously issued warnings about Iran’s rapidly advancing missile capabilities, which has further heightened anxiety among shipping operators in the region. Greece’s shipping ministry warned ships to be ready to use “conventional” navigation methods that don’t rely on electronics, citing the risk of interference in the region.
At least three LNG tankers, either going to or coming from Qatar, paused their voyages to avoid the waterway. Qatar is the world’s second-largest LNG exporter, supplying 20% of global LNG last year, and all its shipments must pass through the strait to reach buyers in Asia and Europe. Several container ships have also halted or turned around, according to tracking data.
Some shipowners are considering canceling already-booked voyages into the Middle East using a “war clause,” which allows them to do so if hostilities break out between countries like the US and Iran. While futures markets were closed over the weekend, a retail trading product was pricing West Texas Intermediate crude more than 8% higher on Saturday evening London time. How the broader market reacts next week will depend on how the situation develops in the hours and days ahead.
Published: Mar 1, 2026 12:45 pm