Iran’s Islamic Revolutionary Guard Corps (IRGC) declared on March 27 that shipping to and from ports supporting Israel and the U. S. is banned in any corridor, with the Strait of Hormuz closed to transits facing “harsh measures. ” Three container ships of different nationalities were turned back from the Strait after IRGC warnings.
The Strait of Hormuz is a crucial waterway linking the Gulf with the Gulf of Oman, vital for oil and gas exports from countries like Kuwait, Iran, Iraq, Qatar, and the UAE. Following the IRGC’s statements, oil prices briefly rose to their highest since 2022. The United Nations warned that high oil prices could lead to a cost-of-living crisis, similar to the aftermath of Russia’s invasion of Ukraine in 2022, and a prolonged conflict could disrupt fertilizer supplies, threatening global food security, as one-third of the world’s fertilizers pass through this strait. An extended war might raise fears of a global economic crisis akin to the oil shocks of the 1970s.
The IRGC threatened to fire on any ship passing through the Strait. At least 11 ships have been attacked since the conflict began, causing most shipping traffic to stop. Ship insurance costs have increased by up to 300%. In response, U. S. President Donald Trump stated that the U. S. would protect oil tankers in the Strait and authorized the U. S. Development Finance Corporation to insure shipping companies. French President Emmanuel Macron announced plans for a European and Asian joint mission to protect shipping after the conflict concludes, while France is sending naval forces to the area. British Prime Minister Keir Starmer discussed support options with other European leaders.
Securing the Strait is difficult due to its narrow shipping lanes and the presence of Iranian military forces. Despite the decline of Iran’s conventional navy, the IRGC still has considerable weaponry to disrupt shipping. Escorting vessels through the Strait could be feasible in the short term but would require substantial resources for long-term sustainability.
Although the UAE and Saudi Arabia are exploring alternatives to the Strait, such as oil pipelines, these options are not currently operational and have shown vulnerability to attacks in the past.
(Production: Vanessa Romeo, Zainab Elhaj) Copyright: (c) 2026 Thomson Reuters
