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Global Shipping Firms Scale Back Strait of Hormuz Transit After U.S. Strikes on Iran

The world’s critical shipping artery, the Strait of Hormuz, is seeing a sharp reduction in vessel traffic following a dramatic escalation in U.S.-Iran tensions. Several major shipping companies are either slowing or pausing transits through the narrow Persian Gulf passage after the United States launched airstrikes targeting three of Iran’s nuclear enrichment facilities: Fordo, Natanz, and Isfahan.

This significant military action, aimed at undermining Tehran’s nuclear ambitions amid its tensions with Israel, has triggered widespread anxiety in global energy and shipping markets. The Strait of Hormuz, which links the Persian Gulf to the Arabian Sea, is responsible for the daily transit of approximately 20% of the world’s oil and petroleum product consumption, according to the U.S. Energy Information Administration (EIA). Additionally, nearly 20% of global liquefied natural gas (LNG) shipments, primarily from Qatar, also pass through this critical maritime chokepoint.

Immediate Slowdown as Security Risks Surge

Jakob Larsen, head of security at Bimco, the world’s largest shipping association, confirmed that many shipowners are now putting transits on hold amid the deteriorating security situation. Prior to the U.S. strikes, shipping activity remained mostly stable despite the ongoing Israel-Iran conflict. However, the strikes have caused some operators to reconsider their routes entirely.

“We’re seeing clear indications that fewer vessels are passing through the Strait of Hormuz since the U.S. attacks,” Larsen said. “If Iranian forces begin targeting commercial shipping, it could trigger a far more dramatic reduction.”

Iran Threatens Retaliation, Heightening Geopolitical Stakes

In response to the strikes, Iran’s parliament has reportedly approved a resolution supporting the closure of the Strait of Hormuz, a move that would carry enormous consequences for global trade and energy prices. While any final decision rests with Iran’s Supreme National Security Council, this development has already rattled major energy markets.

The U.S. has since urged China—Iran’s key trading partner—to exert diplomatic pressure to prevent such an extreme measure, while European powers warn of far-reaching economic repercussions if shipping disruptions worsen.

Global Shippers Enter “Standby Mode”

The growing tensions are prompting some of the world’s largest shipping operators to take precautionary measures:

• Nippon Yusen (NYK), Japan’s largest shipping line, introduced a policy requiring ships to pause near the Strait of Hormuz for one or two days when schedules allow, as part of heightened risk mitigation, according to S&P Global Commodity Insights.
• Mitsui O.S.K. Lines (MOL), another major Japanese operator, has also instructed its vessels to minimize time spent in the Gulf, as reported by Reuters.
• German container giant Hapag-Lloyd continues operating in the region but is maintaining crisis protocols. “The situation remains highly unpredictable and can change within hours,” a company spokesperson warned.

Insurance Premiums and Operational Costs Skyrocket

Peter Sand, chief analyst at freight platform Xeneta, emphasized that container shipping through the broader Persian Gulf and Indian Ocean remains active but is being reevaluated in real-time. “All companies are reassessing risks multiple times daily, coordinating with national intelligence agencies and their captains at sea,” Sand told CNBC.

The surging risk profile is already driving up marine war insurance premiums—a cost that could escalate dramatically if Iran retaliates against commercial vessels or moves to fully close the strait.

“The insurance rates have likely been increased again,” Sand noted, adding that energy markets are bracing for potential supply shocks if tanker traffic halts entirely.

Broader Economic Implications Loom

The Strait of Hormuz remains the most vulnerable pressure point in global energy logistics. Even temporary blockages or reductions in traffic have historically sent crude oil prices sharply higher. A full closure could lead to immediate price spikes well above $150 per barrel, according to analysts at S&P Global, with ripple effects extending into global inflation, manufacturing, and consumer energy costs.

Beyond energy, any prolonged disruption would also significantly impact the broader global supply chain, already strained by geopolitical conflicts, Red Sea attacks, and climate-driven disruptions at key global chokepoints like the Panama Canal.

A Fragile New Phase for Global Shipping

With the Strait of Hormuz once again at the center of geopolitical flashpoints, global trade routes are entering an increasingly fragile phase. For now, many shipping operators are hedging by pausing transits rather than fully suspending operations. However, any miscalculation or escalation could have far-reaching consequences not just for regional stability but for the global economy as a whole.

The coming days may prove decisive, as both military and diplomatic efforts play out against one of the world’s most strategically important—and vulnerable—shipping corridors.