Iran Declares Strait of Hormuz Closed; Tanker Traffic Halts
Mar 7th 2026
After US and Israeli strikes on Iran and subsequent Iranian drone attacks on tankers, the IRGC declared the Strait of Hormuz closed on March 2, insurers pulled war risk cover, over 150 ships are stranded, and global oil and gas markets face major disruption.
- Iran's Islamic Revolutionary Guard Corps declared the Strait of Hormuz closed on March 2, 2026.
- Drone attacks in early March damaged at least five tankers and killed two seafarers.
- Major war risk insurers withdrew coverage for the Persian Gulf, prompting shipping lines to suspend Gulf transits.
- About 20 percent of the world's daily oil supply normally transits Hormuz and is now effectively blocked.
- More than 150 ships are anchored outside the strait awaiting safe transit.
- Brent crude rose to about $83 per barrel from $73 and very large crude carrier freight rates hit a record $423,736 per day.
- Qatar halted LNG production at Ras Laffan and Mesaieed after strikes, sending European gas futures up roughly 30 percent.
- Alternative export routes can replace only a fraction of Hormuz flows, and models show a prolonged closure could push Brent as high as $185 per barrel.
- The United States announced naval escorts and political risk insurance, but shipping companies say normal transits will resume only when crossings are judged safe