Iran War: Strait of Hormuz closed, massive tanker blockade

Satellite images showed on Sunday, that at least 150 Tanker stuck. Dozens more lie loudly Reuters-Information on the other side of the strait. Especially in big ports like Fujaira in the United Arab Emirates. Due to the hostilities, the US Navy issued warnings voyages throughout the region – the Persian Gulf, the Gulf of Oman, the North Arabian Sea and the Strait of Hormuz – as it cannot guarantee the safety of shipping.

But what is it? Strait of Hormuz and why is it so important for world trade?

The strait lies between the Oman and Iran. It connects the Persian Gulf in the north with the Gulf of Oman in the south and the Arabian Sea. At its narrowest point it is only 33 kilometers wide. The navigable passages in both directions are only three kilometers wide. The central fairway is considered international shipping lane.

Immense importance for oil and gas transportation

Whoever controls the Strait of Hormuz controls energy prices in Europe and Asia. Approximately a fifth of global oil consumption is transported through the strait. Last year, according to data from analysis firm Vortexa, more than 100,000 euros happened on average every day 20 million barrels of crude oilcondensate and fuels the strait.

The OPEC members Saudi Arabia, Iran, the United Arab Emirates (UAE), Kuwait and the Irak export most of their crude oil via the Strait of Hormus. The main buyer is Asia, especially China. Qatar, one of the world’s largest exporters of liquefied natural gas (LNG), ships almost all of its LNG this way.

The leading OPEC+ producers Saudi Arabia and the United Arab Emirates have already increased their oil exports in recent days as part of emergency plans. Both countries have also tried to find alternative routes to avoid the strait. On Sunday, the eight member countries of OPEC+ decided their production quantities from April to increase significantly more than analysts originally expected. The increase in production was explained by the stable outlook for the global economic situation and low oil stocks; the war was not mentioned at all.

Nervous raw materials and stock markets

Even a temporary supply bottleneck – even just a few days – unsettles the markets, disrupts supply chains and drives up the prices for oil and gas.

Analysts are therefore expecting a sharp increase in the price of oil and gas. “Oil markets could face their worst fears on Monday,” the bank said in a report Bank Barclays, die As things currently stand, it is assumed that the price of Brent 100 US-Dollar (84,71 Euro) could achieve.

Due to the expected attack, oil prices had already risen in the past few days. The price for the variety reached on Friday Brent at $73 per barrel the highest level since July 2025. Monday is therefore eagerly awaited.

The events on Monday are also likely to leave their mark on the stock markets. As a result of the reassessment of the risk premiums, price losses are expected, although, as in the past, the price fluctuations could only be short-lived.

The possible economic consequences

Any disruption to the energy supply has wide implications because bottlenecks can lead to production losses in industry and thus paralyze the economy. The rising prices could be a new one Wave of inflation trigger. Especially in China, India, Japan – but also in Europe.

Transport costs are also increasing. According to a commentary by Franklin Templeton, insurers are already recalculating risk coverage for the war in the Middle East. Increases of around 50 to 60 percent are reported. This further increases the “effective supply” of available oil.

The trade in liquefied natural gas (LNG) in particular is a growing business that has gained economic importance for Europe after the Russian attack on Ukraine. Approximately 18 billion cubic meters of LNG, that flow through Hormuz land annually in European ports. The loss of these quantities would be noticeable immediately.

But not only energy, but also world trade goods are affected. The ports of Jebel Ali and Khor Fakkan are stopovers for many freighters on the way to Europe, East Africa or South Asia. Anyone who blocks this will affect entire supply chains.

High price for Iran

But the price of the blockade is also high for Iran. Around 65 percent of its government revenue comes from exporting oil. Almost all of it leaves the country through the Strait of Hormuz. A self-blockade is tantamount to economic self-sabotage – a shot in the foot. It is therefore questionable how long the blockade will last.