Iran's Strait of Hormuz Blockade Cripples Global Oil Supply

The US-Iran war has disrupted global oil supply since February 28, 2026, when US and Israeli forces launched military strikes on Iran. The conflict has simultaneously disrupted both production capacity and transit infrastructure, particularly affecting the Strait of Hormuz, a narrow passage connecting the Persian Gulf to the Arabian Sea.

The Strait is a critical chokepoint for global oil trade, carrying approximately one-fifth of daily global consumption before the war began. Iranian attacks on energy facilities across the broader Middle East have compounded direct supply losses from Hormuz restrictions. By mid-August 2026, shipping traffic through the Strait had collapsed to just nine vessel transits per day.

Iran's blockade strategy is asymmetrical and does not require matching US military capabilities to inflict severe economic pain. The country restricts a 34-kilometre-wide waterway with mines, coastal missile batteries, and naval harassment, creating a disproportionate disruption relative to the resources required to sustain it.