Oil tanker traffic through the Strait of Hormuz has decreased as security risks have risen due to escalating tensions in West Asia following US-Israeli strikes on Iran and retaliatory strikes by Islamic nations.
Shipping activities came to a near standstill due to the conflict involving more than 700 ships massed on both sides strategic path, This follows from a report by the Turkish news agency Anadolu.
Located at the mouth of the Persian Gulf, the Strait of Hormuz connects oil and liquefied natural gas production in West Asia to global markets through Gulf of Oman and the Indian Ocean. About 20 percent of the world’s daily oil consumption, or about 20 million barrels, passes through this strategic corridor.
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After a joint attack from the side United States (US) and Israel on Iran over the weekend, ship operators halted sailings due to skyrocketing insurance costs.
International news agencies immediately cited the analysis data company Kplerwith up to 21 million barrels of oil transported by 15 tankers on February 27, rising to 21.6 million barrels by 18 ships on Saturday. But on March 1, only three tankers carrying 2.8 million barrels crossed the strait, the agencies said.
With a year-to-date average daily flow of 19.8 million barrels, supplies on March 1 were down 86 percent from the 2026 average, Anatolia reported.
706 to date non-Iranian tankers They are waiting on both sides of the strait, the agency said on March 2. Of these, 334 oil tankers, 109 vessels carrying dirty oil products and 263 vessels carrying clean oil products are located at various locations in the Persian Gulf (west of the strait), the Gulf of Oman (east of the strait) and Arabian Seahe said.
Is the Strait of Hormuz closed?
Since the joint US-Israeli strikes on Iran that began over the weekend, there have been reports that Islamic Revolutionary Guard Corps sent messages to ships intending to use the Strait of Hormuz that “no vessels will be permitted to pass”.
Some reports indicated that these warnings were broadcast to the crews of ships operating in the Persian Gulf over the international calling and emergency frequency VHF Channel 16, yet no official statement was issued confirming the formal closing of the throttle.
Iranian media claimed that the Strait of Hormuz was effectively closed.
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The UK Maritime Trade Operations (UKMTO) said in a statement on Sunday that the maritime security level in the Strait of Hormuz had been raised to “critical”, the highest risk category.
Asian oil refiners to cut operating rates: Report
Asian oil refiners are considering cutting operating rates as the escalating war in the Middle East and shipping difficulties through the Strait of Hormuz threaten their access to oil, Bloomberg reported.
Some major processors are considering cutting operations by 20% to 30% as dozens of oil-laden tankers remain stranded in the Persian Gulf, people with knowledge of the discussions said, the news outlet said.
Major Asian markets such as China, India, South Korea and Japan are among the most dependent on oil transit Hormuztaking on the costs of long-term contracts from producers such as Saudi Arabia, Iraq and the United Arab Emirates.
These shipments typically take about 15 to 30 days to reach ports in Asia, making it difficult to replace them from more distant sources in the Americas, Europe, and Africa.
Iran’s oil must transit through Hormuz, although the country’s large volumes of oil on tankers offshore in Asian waters provide a temporary buffer. Refineries typically maintain crude oil inventories of at least two to three weeks to protect against short-term supply delays or disruptions.
India restricts gas supplies to industries
Indian companies cut natural gas supplies to industry on Tuesday in anticipation of tighter supplies from the Middle East after top producer Qatar halted production, four industry sources with knowledge of the matter told Reuters.
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Qatar halted its liquefied natural gas production on Monday as Iran continued to strike Gulf countries in retaliation for strikes against it by Israel and the US. The attacks also halted oil and gas shipments through the Strait of Hormuz, raising global energy prices and transportation costs.
With regard to the ongoing geopolitical developments in the Middle East, the Minister of Petroleum and Natural Gas, Hardeep Purireviewed the supply situation of oil, LPG and other petroleum products with senior officials of the ministry and PSUs on Monday
The maritime security level for the Strait of Hormuz has been raised to “critical”, the highest risk category.
“We are constantly monitoring the evolving situation and all steps will be taken to ensure the availability and affordability of major petroleum products in the country,” the ministry said in a statement.
(With inputs from Bloomberg, Reuters and Anadolu)
