More than 400 vessels are queued near the Strait of Hormuz, awaiting the full reopening of the critical waterway, according to shipping data. The strait, a narrow passage between Iran and Oman, handles about a fifth of the world's oil supply, making the congestion a significant concern for global energy markets.
The backlog has built up after recent tensions in the region, including Iran's seizure of a container ship and ongoing disruptions linked to the Israel-Hamas conflict. While the strait has not been completely closed, shipping traffic has been slowed, with many vessels anchoring or drifting in holding patterns outside the Gulf.
Impact on Oil and Trade
Tankers carrying crude oil and liquefied natural gas are among the ships waiting, raising fears of supply delays. Analysts warn that prolonged congestion could push up oil prices and shipping costs, especially if the situation escalates. The Strait of Hormuz is a chokepoint for energy exports from Saudi Arabia, Iraq, Kuwait, the UAE, and Iran itself.
Regional Tensions and Insurance Costs
Insurance premiums for ships transiting the strait have risen sharply, and some vessels are taking longer alternative routes around Africa. The situation remains fluid, with diplomatic efforts underway to de-escalate tensions, but no clear timeline for normal operations has been announced.