Gulf News: Dubai: Some of the world’s largest oil companies and leading trading houses have suspended crude and fuel shipments through the Strait of Hormuz, as US and Israeli strikes on Iran — and Tehran’s retaliation — rattle global energy markets.

Reuters, citing four trading sources, reported that several firms have paused voyages amid growing fears that the world’s most critical energy chokepoint could become a flashpoint in the escalating conflict.

“Our ships will stay put for several days,” a senior executive at a major trading desk told Reuters.

The move underscores mounting concern over the safety of the narrow waterway that carries roughly one-fifth of the world’s oil supply.

While some tankers have halted operations, maritime traffic has not fully stopped. Bloomberg, citing naval observers and ship-tracking data, reported that at least 17 oil tankers were still transiting the strait in both directions as of 10:30 GMT.

However, signs of caution are spreading. At least three LNG carriers traveling to or from Qatar have paused voyages to avoid the strait, according to Bloomberg. Qatar accounts for about 20% of global liquefied natural gas supply, and virtually all of its exports must pass through Hormuz to reach buyers in Asia and Europe.

Tankers idle near Gulf of Oman
Several supertankers have reportedly slowed or come to a standstill near the approaches to the strait.

The Eagle Veracruz, carrying two million barrels of Iraqi crude bound for China, halted at the western approach. It was joined by the Front Beauly, loaded with a similar volume of Saudi crude.

The supertanker Mitake, en route to Ras Tanura in Saudi Arabia, also reduced speed east of Oman after news of the US attack broke, adding to a growing cluster of idling vessels in the Gulf of Oman.

The buildup signals rising nervousness among shipowners and traders wary of potential missile threats, naval confrontations, or mining of the waterway.

Why the Strait of Hormuz is critical
The Strait of Hormuz connects the Arabian Gulf to the Indian Ocean and lies between Iran and Oman’s Musandam exclave. At its narrowest point, it is just 50km wide and no deeper than 60 meters (200 feet) in places — making it highly vulnerable to military disruption.

According to the US Energy Information Administration (EIA), it is “one of the world’s most important oil chokepoints.”

Roughly 20 million barrels of crude per day — about 20 per cent of global consumption — passed through the strait in 2024. Around one-fifth of global LNG trade also transits the route, primarily from Qatar.

More than 80 per cent of oil and gas shipments through Hormuz are destined for Asian markets, making economies in China, India, Japan and South Korea especially exposed to any disruption.

Military threat and strategic leverage
The waterway is surrounded by strategically sensitive islands, including Iran’s Hormuz, Qeshm and Larak, as well as the disputed Greater Tunb, Lesser Tunb and Abu Musa islands.

Naval operations in the Gulf are overseen by Iran’s Islamic Revolutionary Guard Corps (IRGC), which has repeatedly threatened to close the strait during periods of heightened tension.

In January, a senior IRGC naval commander warned that the waterway could be shut if Iran came under attack — weeks before President Donald Trump followed through with military action tied to Tehran’s nuclear program.

Any attempt to block the strait, even temporarily, would represent a dramatic escalation with global consequences.

Global market implications
The growing backlog of vessels and suspension of some shipments have heightened fears of supply disruptions and sharp price volatility.

Although tanker traffic continues, traders and governments are closely monitoring whether Iranian retaliation or further military escalation could disrupt ports, energy terminals or maritime routes.

A prolonged disruption — or even the perception of one — could trigger significant spikes in oil and gas prices, pressure global inflation and rattle financial markets.

For now, the Strait of Hormuz remains open. But as military tensions intensify, it is once again at the center of the world’s energy security concerns.