U.S. Strikes on Iran Choke Off Major Oil Shipping Lane
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Cars line up at a gas station in Seoul on Sunday, as concerns over rising fuel prices grow following U.S. and Israeli strikes on Iran. Photo: IC Photo
Global shipping through the Strait of Hormuz has ground to a near-total halt after U.S. and Israeli airstrikes on Iran on Saturday prompted Tehran to retaliate by declaring the vital waterway off-limits, sending oil transport costs soaring and stranding more than 100 vessels.
As of 3 p.m. local time on Sunday, only 19 non-Iranian vessels had passed through the strait, less than one-fifth of the normal daily volume, and most were small to midsize ships, according to vessel-tracking data compiled by Caixin. A very large crude carrier (VLCC) operated by China Merchants Energy Shipping Co. Ltd. (601872.SH) was among the last large tankers to transit the strait yesterday.
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- Shipping through the Strait of Hormuz has nearly stopped after U.S. and Israeli airstrikes on Iran, with over 100 vessels stranded and oil transport costs soaring.
- As of Sunday, only 19 non-Iranian vessels passed through the strait, less than 20% of normal traffic; major shipping lines and Japan’s top three firms suspended transits.
- Oil freight rates and insurance premiums have surged, with average daily charter rates hitting $168,700 and some over $200,000—a six-year high.
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Who’s Who
- China Merchants Energy Shipping Co. Ltd.
- China Merchants Energy Shipping Co. Ltd. (601872.SH) operates a very large crude carrier (VLCC), which was among the last large tankers to pass through the Strait of Hormuz before the recent disruptions. This indicates their involvement in global oil transport routes.
- Hapag-Lloyd AG
- Hapag-Lloyd AG, a major shipping line, announced the suspension of all its ship transits through the Strait of Hormuz until further notice. This decision was made in response to Iran declaring the vital waterway off-limits following U.S. and Israeli airstrikes, impacting global shipping and causing other prominent companies like Maersk, MSC, and China Cosco Shipping to follow suit.
- A.P. Moller–Maersk A/S
- A.P. Moller–Maersk A/S (马士基) is one of the major shipping lines that has paused vessel traffic in the Strait of Hormuz. This action was taken due to the ongoing crisis and Iran's declaration that the vital waterway is off-limits.
- MSC Mediterranean Shipping Co. SA
- MSC Mediterranean Shipping Co. SA (地中海航运公司) has paused vessel traffic in the Strait of Hormuz. This decision comes as the strait, a vital global energy chokepoint, faces closure after U.S. and Israeli airstrikes on Iran prompted Tehran to declare the waterway off-limits.
- China Cosco Shipping Corp. Ltd.
- China Cosco Shipping Corp. Ltd. (known in Chinese as 中国远洋海运集团有限公司) is a major shipping line that has paused its vessel traffic through the Strait of Hormuz. This action follows Iran's declaration that the vital waterway is off-limits due to escalating tensions. The disruption is a response to the growing crisis in the region, which has led to significant concerns about rising insurance and freight costs for shipping companies.
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What Happened When
- By February 12, 2026：
- Start of the observed surge in the China Import Crude Oil Tanker Freight Index and VLCC rate increases.
- February 26, 2026：
- The China Import Crude Oil Tanker Freight Index has jumped 56.9% since February 12, 2026; VLCC rates surged 59.4% over the same period.
- Saturday, March 1, 2026：
- U.S. and Israeli airstrikes on Iran occur, prompting Iran to declare the Strait of Hormuz off-limits.
- Saturday, March 1, 2026：
- VLCC operated by China Merchants Energy Shipping Co. Ltd. is among the last large tankers to transit the strait.
- Late Saturday, March 1, 2026：
- Iran’s Islamic Revolutionary Guard Corps declares that no vessels have the right to pass through the strait.
- After Saturday, March 1, 2026：
- International insurers begin issuing cancellation notices for policies covering the Persian Gulf and Strait of Hormuz.
- Sunday, March 2, 2026：
- Announcement by Hapag-Lloyd AG to suspend all ship transits through the strait.
- Sunday, March 2, 2026：
- Japan’s top three shipping firms suspend voyages through the strait.
- Sunday, March 2, 2026：
- Reports of panic buying and long lines at gas stations in South Korea; government implements contingency measures.
- Sunday, March 2, 2026 (as of 3 p.m. local time)：
- Only 19 non-Iranian vessels have passed through the strait since the crisis began.
- Sunday, March 2, 2026 (evening)：
- More than 100 vessels are stranded at both ends of the strait.
AI generated, for reference only
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