The Strait of Hormuz is a 33km-wide channel between Iran and Oman, the sole sea exit for every Gulf hydrocarbon producer including Saudi Arabia, Kuwait, Iraq, the UAE and Qatar as well as Iran itself. Iran signed but never ratified the international treaty guaranteeing transit passage through straits, a legal gap its repeated closure claims lean on without being able to enforce them in law.

Control of the waterway is also contested from within: Iran's civilian government and its Revolutionary Guard Navy have repeatedly issued rival transit rules of their own, most recently when the Guard's own strike on a container ship was used to justify a closure declaration Tehran's foreign ministry had not itself made.

An improvised insurance economy has grown up around that legal gap. The US Treasury named Iran's HormuzSafe scheme and the state-linked Persian Gulf Marine Insurance Company as sanctions-evasion vehicles on 30 July, even as both continue to broker the transit cover shipowners are told they need before they will sail. That structure, not any single naval announcement, is why the strait generates a market-moving headline most weeks while the picture on the water stays the hardest thing to confirm.

Common Questions

Brent tracks claims not cargo

Why do Kpler and S&P Global give different Hormuz transit counts?

Kpler counted six commodity-vessel crossings on 18 August and five on 16 August, but S&P Global Commodity Insights put 16 August at a single ship. Kpler publishes what it counts; S&P Global has not disclosed the vessel universe behind its figure, so the two counts cannot be reconciled.Source: Kpler / S&P Global Commodity Insights

Reference

How much of Europe's gas supply depends on the Strait of Hormuz staying open?

Europe holds no direct pipeline exposure to the strait, but its LNG imports include Qatari cargoes that transit Hormuz, making the chokepoint a recurring source of price risk rather than physical supply risk.Source: european-energy-markets

What is the BIMCO CONWARTIME clause and why does it matter for Hormuz?

CONWARTIME is a standard shipping clause that allows charterers to refuse voyages into declared war-risk zones. It remains triggered across Gulf Charter contracts, meaning operators can legally decline Hormuz transits regardless of political agreements.Source: BIMCO

What is Britain doing at the Strait of Hormuz?

On 13 May 2026, the UK formally committed Typhoon aircraft, HMS Dragon, mine-clearance vessels, and drones to the 51-nation Northwood Coalition mandated to protect merchant shipping and Conduct post-Ceasefire mine clearance.Source: UK Ministry of Defence

What is the Northwood Hormuz coalition and when can it deploy?

A 51-nation Coalition co-led by Britain and France was reclassified from planning to established on 20 April 2026. Over 30 nations sent planners to Northwood on 22-23 April to build the operational framework. Deployment is conditioned on 'a sustainable Ceasefire': the Coalition cannot operate alongside the US blockade while hostilities continue.Source: GOV.UK / UK MoD

How much of the world's oil goes through the Strait of Hormuz?

Before the 2026 conflict, roughly 20 million Barrels Per Day (around 20% of global traded crude oil) plus 20% of global LNG transited the strait daily. The IEA called the 2026 disruption the largest supply shock in oil market history.Source: IEA

Has the Strait of Hormuz been closed before?

The strait was not formally closed during the 1984-88 Iran-Iraq Tanker War, but Iran and Iraq attacked roughly 500 commercial vessels in the Persian Gulf. The US ran Operation Earnest Will convoys from 1987 to escort reflagged Kuwaiti tankers. The 2026 closure is the first time Iran has enforced a near-total transit ban.

Why is the Strait of Hormuz so strategically important?

It is the only maritime exit for all six major Gulf oil producers: Saudi Arabia, Kuwait, Iraq, UAE, Qatar, and Iran. There is no functioning bypass at scale: Iran struck the Habshan-Fujairah pipeline in March 2026, leaving the strait as the sole viable route for roughly 20% of global oil supply.

Where exactly is the Strait of Hormuz?

The Strait of Hormuz is a 33 km wide passage between Iran to the north and Oman and the UAE to the south, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. It sits between approximately 26°N and 27°N Latitude.

What is the Hormuz toll system?

The IRGC charges up to $2 million per large tanker for transit through a 5-mile corridor in Iranian territorial waters. Ships are vetted by country tier, required to change flags and use VHF passcodes, and escorted by IRGC patrol vessels. The Majlis is legislating the toll into domestic law.

Why did P&I clubs cancel and then rebuy Hormuz war-risk cover in August 2026?

Twelve leading P&I clubs cancelled ancillary regional war-risk extensions after reinsurers withdrew backing, then arranged replacement buyback cover at current market prices within three days, Lloyd's List reported on 18 August. Ordinary Protection and Indemnity cover was unaffected throughout.Source: Lloyd's List

Was anyone killed in the Strait of Hormuz in August 2026?

One crew member died when an unclaimed projectile struck an outbound vessel's engine room on 18 August. UKMTO logged it as Warning Attack 115-26; no vessel name, flag, operator or attacker has been published.Source: UKMTO / Al Jazeera

How did the July 2026 US-Iran strike halt affect European gas prices?

TTF front-month gas fell about 8%, from a three-year high near EUR 63.50/MWh on 24 July to EUR 58.40 by 27 July, during the four-day pause in US strikes on Iran. That pause ended on 29 July when US strikes resumed after IRGC missiles hit Muwaffaq Salti Air Base in Jordan, illustrating how Hormuz-linked risk sentiment moves European gas benchmarks even without any change in physical throughput.Source: Lowdown

How much oil does Iran export through the Strait of Hormuz in 2026?

Iran's oil exports fell below 300,000 Barrels Per Day in May 2026, down from 1.84 million bpd before the war. Revenue lost since April amounts to approximately $5.8 billion, with 67 million barrels stranded inside the Gulf.Source: Kpler / Lloyd's List

What are war-risk insurance premiums for ships in the Strait of Hormuz?

Lloyd's Joint War Committee held its Strait of Hormuz war-risk designation unchanged at $10-14 million per voyage as of 26 May 2026, declining to de-list despite crude oil futures falling below $100. The divergence between futures traders (who reprice on headlines within minutes) and insurers (who require formal de-escalation) is the defining pricing tension of the conflict.Source: Lloyd's / Lowdown Update 108

How long would it take to reopen the Strait of Hormuz after a ceasefire?

The Pentagon estimates up to six months for mine clearance after a Ceasefire, based on HASC briefings from 22 April 2026. Aramco's CEO said oil market normalcy would not return until 2027 if the blockade continues past mid-June. A deal signed in late May 2026 would therefore not restore full traffic until late 2026 at earliest.Source: Pentagon / Aramco / Lowdown

How does the Persian Gulf Strait Authority work?

Iran created the Persian Gulf Strait Authority (PGSA) on 5 May 2026 as a named state body. Vessels must register, submit destination, flag history, cargo value, and crew nationalities, then pay a transit toll in yuan or stablecoins before receiving clearance. The Majlis is legislating the regime into permanent Iranian domestic law.Source: IRGC / Majlis

Why are thousands of seafarers trapped at the Strait of Hormuz?

The Persian Gulf Strait Authority suspended the Oman-IMO evacuation corridor on 25 June 2026 after an IRGC drone struck the Ever Lovely inside it. Around 11,000 seafarers were Left without an approved exit route. A second vessel, the tanker Kiku, was struck on 27 June.Source: IMO / PGSA / CENTCOM, June 2026

Why did the US bomb Qeshm Island in June 2026?

CENTCOM struck missile and drone storage on Qeshm Island and a coastal radar near Sirik on 26 June, citing IRGC drone attacks on the Ever Lovely and Kiku inside the IMO SAFE corridor as a clear Ceasefire violation. It was the first US kinetic strike on Iranian soil since the Islamabad MOU.Source: CENTCOM statement, 26 June 2026

Why did Iran fire on Indian tankers that had clearance to transit?

IRGC gunboats fired on the Sanmar Herald and Jag Arnav on 18 April after both vessels received prior radio clearance from Iranian authorities. The incident, captured in intercepted bridge transmissions, confirmed that IRGC command-and-control over the strait is not unified.

How long will it take to clear mines from the Strait of Hormuz?

A minimum of 40-50 days to sweep navigable channels, with full clearance extending to six months. The IRGC itself cannot locate all placements, complicating even cooperative demining.Source: Pentagon HASC briefing

Source Material

IMO Maritime Security Lloyd's Market Notices, Joint War Committee Oil Supply Security — Strait of Hormuz The Strait of Hormuz: the world's most important oil chokepoint The Strait of Hormuz is the world's most important oil transit chokepoint IMO Maritime Security Advisories IEA Oil Market Reports Reuters Middle East coverage Oil Security — Strait of Hormuz context The Strait of Hormuz: the world's most important oil chokepoint Reuters Middle East Strait of Hormuz: The world's most important oil artery Strait of Hormuz: Why it matters Strait of Hormuz: The world's most important oil artery World Oil Transit Chokepoints Strait of Hormuz