The Strait of Hormuz is effectively closed. Since the beginning of the conflict involving the United States, Israel and Iran on Feb. 28, 2026, oil tanker traffic through the world’s most critical oil shipping choke point has collapsed, dropping by more than 90%.
Iran has threatened to destroy any ships, including oil tankers, that pass through the strait from the oil depots of the Persian Gulf to the Arabian Sea and the rest of the world. Companies that insure ships against the risks of traveling in war zones are deciding whether to issue coverage on an individual-ship basis. The international body that sets many shipping regulations has told ships’ crews that they have the right to refuse to sail into the area.
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