Inside the Strait of Hormuz Crisis: Shipping Collapses as War Tightens Grip

The Strait of Hormuz—one of the world’s most critical energy corridors—has been nearly paralysed, with maritime traffic collapsing under the strain of escalating conflict in the Middle East.

Under normal circumstances, the narrow passage handles about 20 percent of global oil and LNG flows. But since February 28, when the United States and Israel began bombing Iran, the region has descended into a cycle of retaliation and disruption.

Tehran’s response has included tight restrictions on access to the strait, effectively reshaping shipping patterns.

A Narrow ‘Tehran Toll Booth’ Emerges

Most vessels still attempting the crossing are now funneled through a limited corridor near Larak Island, informally dubbed the “Tehran toll booth” by Lloyd’s List.

More than 26 ships—primarily Greek- and Chinese-owned, alongside Indian, Pakistani and Syrian vessels—have been tracked using this route.

Since mid-March, no ships have been recorded using the traditional passage outside the corridor.

Traffic Plunges, Risk Rises

The scale of disruption is stark. Daily crossings, which usually average about 120, have dwindled to a fraction of that.

From March 1 to 26, only 158 crossings were logged—a 95 percent drop, according to Kpler. Just two ships were seen heading west on Thursday, both carrying corn to Iran.

Meanwhile, security risks remain high. The UKMTO reports 24 incidents involving commercial vessels since early March, though none have been recorded since the Phoenix explosion in Emirati waters on Sunday.

Some attacks claimed by Iranian forces have yet to be independently confirmed.

Human and Strategic Costs

The human toll is mounting. The International Maritime Organization says at least eight maritime workers have died, with others missing or injured, and roughly 20,000 seafarers affected.

At the same time, sanctioned vessels are playing an outsized role in the limited traffic that continues. According to AFP data, more than 43 percent of crossings involve ships under US, EU or UK sanctions—rising to 56 percent among oil and gas carriers.

Despite reduced movement through the strait, over 2,000 vessels—including nearly 300 tankers—remain active in surrounding Gulf waters, highlighting the ongoing strategic importance of the chokepoint even amid disruption.

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