Iran Closes Strait of Hormuz, Oil Traffic Plummets to 6% of Normal Levels

The Strait of Hormuz, a vital passage for global oil shipments, has been effectively closed by Iran, resulting in a dramatic decline in maritime traffic. As of August 22, 2026, only four vessels are reported to have passed through the strait daily, a stark reduction from the usual 74 ships, marking traffic at approximately 6% of pre-crisis levels. This closure began on February 28, 2026, following military strikes by the United States and Israel on Iranian positions, and has now entered its sixth month with no resolution in sight.

Iran's Supreme National Security Council Secretary Mohsen Rezaei has stated that the closure will persist until the U.S. alters its military operations and lifts sanctions against Iran. The Islamic Revolutionary Guard Corps is enforcing the closure, requiring vessels to undergo vetting before transit. The U.S. maintains that some passage remains possible under its naval oversight, disputing Iran's claims of total control over the strait.

The impact on oil prices has been significant, with Brent crude climbing to around $94 per barrel, reflecting heightened market fears associated with the closure. This price increase is attributed to a war-risk premium, indicating traders' concerns over potential disruptions in shipping routes. The Strait of Hormuz is crucial for several countries, including Saudi Arabia and the UAE, which rely on it for their oil exports.

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Source: KLEA News