Iran has officially severed one of the world’s most critical maritime arteries. The closure is a direct retaliation stemming from a massive US-Israeli military campaign that commenced in late February and killed Iran’s 86-year-old Supreme Leader Ali Khamenei. Now, the fallout is choking the global economy.
Iranian Foreign Minister Abbas Araghchi declared on state television Wednesday that the Strait of Hormuz is “closed only to enemies.”
“There is no reason to allow the ships of our enemies and their allies to pass,” Araghchi said.
Tehran’s armed forces are actively providing safe passage exclusively to ships from a select group of friendly nations. Vessels from India, China, Russia, Iraq, Pakistan, and Bangladesh can navigate the corridor. Ships from Western-aligned nations face a total blockade.
The strategic chokehold paralyzed international trade. Maritime traffic through the strait plummeted by 95 percent in March 2026. The route went from handling roughly 140 ships a day to just 138 ships total for the month. This blockade is severing roughly 20 percent of the world’s global oil and liquefied natural gas flow.
Markets reacted. Brent crude oil surged to nearly $104 a barrel. WTI is hovering near $92. It tracks for the steepest monthly price jump since 1990.
Diplomatic efforts are failing. Tehran flatly rejected a 48-hour ceasefire ultimatum from US President Donald Trump. Trump urged allied nations to send warships to force the strait open. Many countries declined.
Adding to the crisis, Iran’s parliament is actively drafting legislation that would permanently impose transit fees on vessels seeking safe passage. UN Secretary-General António Guterres publicly demanded the immediate reopening of the waterway. He warned the blockade is critically choking global supplies of oil, gas, and agricultural fertilizers.