Iran conflict disrupts global shipping as tankers are stranded, damaged Insurance companies are canceling war risk coverage for vessels operating in the Middle East Gulf as the escalating Iran conflict disrupts maritime traffic, leaving tankers damaged or stranded and resulting in at least two fatalities. The Strait of Hormuz, a critical waterway that carries approximately one-fifth of the world’s oil consumption along with significant volumes of natural gas, has seen shipping operations nearly halt after Iranian forces retaliated against U.S. and Israeli strikes. One tanker caught fire in the region on Monday, while at least four others sustained damage. Around 150 ships, including oil and liquefied natural gas tankers, are reportedly anchored in the Strait of Hormuz and surrounding waters, according to shipping data. The disruption has triggered a sharp rise in oil and European natural gas prices, with Brent crude futures surging as much as 13% amid fears of prolonged closures and multiple shutdowns in the Middle East. The crisis has also led to a backlog of cargo, with approximately 10% of the world’s container ships trapped in broader shipping delays. Jeremy Nixon, CEO of container carrier Ocean Network Express, warned that cargo could soon begin piling up at major ports and transshipment hubs in Europe and Asia. Iran has declared the Strait of Hormuz closed to navigation, prompting Asian governments and refiners to reassess their oil stockpiles. Iranian Revolutionary Guards commander warned that any vessel attempting to transit the 21-mile-wide waterway would face attacks. Tracking data from MarineTraffic shows tankers are clustered off the coasts of major Gulf oil producers, including Iraq, Saudi Arabia, and Qatar.#us #iran #strait_of_hormuz #iranian_revolutionary_guards #honduran_flagged_tanker
