Major Oil Companies Halt Shipments Through Key Strait After US-Iran Conflict

Multiple oil companies and shipping firms have stopped sending crude oil and natural gas through the Strait of Hormuz following US and Israeli attacks on Iran. Iran has declared the waterway closed to navigation, though the UK Navy says these orders aren't legally binding.

Major energy companies and shipping operators have halted petroleum and natural gas deliveries through the Strait of Hormuz following military strikes by the United States and Israel against Iran, according to industry sources who spoke Saturday.

Iran’s government has declared the strategic waterway off-limits to maritime traffic in response to the attacks, prompting widespread shipping disruptions in the region.

“Our ships will stay put for several days,” one top executive at a major trading desk said. Satellite tracking data reveals numerous vessels accumulating near major ports like Fujairah in the United Arab Emirates, with ships avoiding passage through the Hormuz corridor.

Ships operating in the region have been receiving radio communications from Iran’s Revolutionary Guards stating that “no ship is allowed to pass the Strait of Hormuz,” according to an official with the European Union naval mission Aspides.

British naval authorities countered that Iran’s navigation ban lacks legal authority and recommended that commercial vessels proceed through the area with heightened caution.

The international tanker organization INTERTANKO reported that the US Navy has issued warnings against shipping operations throughout the Persian Gulf, Gulf of Oman, North Arabian Sea, and Strait of Hormuz regions, stating it cannot ensure vessel security.

Greek maritime officials issued guidance Saturday recommending that ships avoid the Persian Gulf, Gulf of Oman and Strait of Hormuz areas, according to an advisory document.

Approximately 20% of worldwide petroleum from major producers including Saudi Arabia, the UAE, Iraq, Kuwait and Iran travels through the Hormuz passage, along with substantial quantities of liquefied natural gas from Qatar.

Maritime analyst Laura Page from Kpler consultancy noted that fourteen LNG carriers have demonstrated signs of decelerating, changing course or stopping near the Strait, with numbers expected to increase and potentially impacting Qatari natural gas exports.