Ships Under Fire as the World’s Most Important Waterway Grinds to a Halt
A narrow strip of ocean separating Iran from the Arabian Peninsula has become the most dangerous and most important stretch of water on Earth this week. At least two cargo ships were struck by unknown projectiles near the Strait of Hormuz, the chokepoint through which roughly one-fifth of the world’s oil and gas flows every single day.
The attacks came as Iran, reeling from the deaths of its Supreme Leader Ayatollah Ali Khamenei and other senior officials in US-Israeli strikes on Saturday, launched retaliatory attacks across the broader Middle East. Explosions have been reported in Dubai, Doha, Bahrain, and Kuwait, a region already on a knife’s edge.
Iran has warned all vessels to stay out of the strait. Ships have listened. Around 150 tankers are now sitting anchored in open Gulf waters, their captains unwilling to risk the passage. Insurance costs have exploded overnight, and major shipping company Maersk has already rerouted its vessels the long way around Africa’s Cape of Good Hope.
“The strait is effectively closed,” said analyst Homayoun Falakshahi of ship tracking firm Kpler. “The risks are too high.”
The human consequences are only beginning to show. Oil prices have already jumped around 10%, with Brent crude hovering near $80 a barrel in after-hours private trades. Some analysts warn the figure could breach $100 if the conflict drags on.
OPEC+ nations, including Saudi Arabia and Russia, have pledged modest production increases to ease the pressure, but experts are skeptical it will be enough.
“This will inevitably lead to price hikes,” warned Edmund King of the UK’s AA motoring group. “The magnitude depends entirely on how long this conflict continues.”
For millions of ordinary people worldwide, the answer to that question will be felt at the fuel pump.
