Strait of Hormuz under fire. Maritime transport in the Middle East suspended

Following a massive attack by the United States and Israel, the Iranian authorities carried out their earlier threats and banned most vessels from sailing through the Strait of Hormuz. The strategic maritime corridor has become a theater of military operations, and its blockade will affect economies around the world. Oil prices are already rising.

Military operations have halted maritime transport

It is worth recalling that the Strait of Hormuz is 167 km long and connects the Persian Gulf with the Arabian Sea. It is the only sea route leading from Kuwait, Qatar, Bahrain and Iraq to the Indian Ocean. Iran, which controls the northern coast of the strait, is well aware of its economic importance and has threatened to close the route since 2011 as part of diplomatic disputes with the West.

After the US-Israeli attack, the Iranian authorities warned all vessels against using the maritime corridor. The Strait of Hormuz is not yet officially closed, and according to the maritime transport monitoring company Kpler, only ships flying the Iranian and Chinese flags are currently passing through it.

Attacks on vessels

Most commercial ships in the region have turned back or are anchored at a safe distance. The Danish company Maersk and the German giant Hapag-Lloyd have suspended sailings due to excessive risk.

The United Kingdom Maritime Trade Operations (UKMTO) has reported that at least three attacks have already taken place on vessels in the vicinity of the Strait of Hormuz. Two ships were hit by missiles, while a third sustained damage due to an explosion nearby. The tanker Skylight was attacked off the coast of Oman, and Iran reported the sinking of a vessel following an unauthorized passage through the strait. Four people were injured.

The Secretary-General of the International Maritime Organization (IMO), Arsenio Dominguez Velasco, unequivocally condemned the aggression in an official statement, writing: No attack on innocent seafarers or civilian shipping can be justified. These crews are simply doing their jobs and must be protected from the consequences of broader geopolitical tensions.

The Strait of Hormuz and the price of crude oil

Approximately 20 percent of the world’s oil and natural gas production is transported through the Strait of Hormuz. It is therefore no surprise that on Monday morning oil prices on Asian exchanges were more than 10 percent higher than before the weekend. Brent crude, regarded as the international benchmark, rose by more than 12 percent on Sunday to around 82 dollars per barrel, but in the evening the price fell below 78 dollars.

Analysts claim that China and India, whose economies depend on Iranian oil, will be particularly affected by the closure of the Strait of Hormuz. Fuels from Saudi Arabia, Iraq and the United Arab Emirates are also transported through the narrow corridor, most of them destined for Asian countries. However, the effects of the blockade will be felt worldwide, mainly in the form of rising oil and natural gas prices and inflation.

Saul Kavonic, head of energy research at MST Marquee, told the BBC in an interview that despite tensions in the Middle East, the market has so far shown no signs of panic because fuel and transport infrastructure have not been targeted. Other experts suggest, however, that if the conflict is prolonged, the price of a barrel of oil could exceed 100 dollars, which would have far-reaching consequences for the global economy.

The countries belonging to OPEC+ agreed on Sunday evening to increase production by 206,000 barrels per day, but it is doubtful whether this will effectively curb price increases. Meanwhile, the first changes are already visible on the stock exchange. CNN reports that overall stock futures are falling, while shares of defense and oil companies are rising.