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Several of the world’s largest oil companies and trading houses have suspended crude and fuel shipments through the Strait of Hormuz following US and Israeli military strikes on Iran and subsequent retaliation by Tehran, according to four trading sources familiar with the matter.
The suspensions, confirmed to Reuters by senior industry executives, affect tanker movements through the narrow waterway that handles approximately 20 million barrels per day, or one fifth of global oil consumption. “Our ships will stay put for several days,” a senior executive at a major trading desk told Reuters, speaking on condition of anonymity due to the sensitivity of the situation.
Market and operational impact
At least 17 oil tankers continued transiting the strait in both directions as of 10:30 GMT on March 1, 2026, according to naval observers and ship tracking data monitored by Bloomberg. However, three liquefied natural gas carriers traveling to or from Qatar have paused voyages to avoid entering the strait, the data shows.
Qatar, which accounts for about 20 percent of global LNG supply, ships virtually all of its exports through the Strait of Hormuz to reach buyers in Asia and Europe. Any sustained disruption could force significant rerouting of LNG carriers around the Cape of Good Hope, adding 15 to 20 days to voyage times and reshaping regional gas pricing dynamics.
The Strait of Hormuz, at its narrowest point just 21 nautical miles wide, has shipping lanes that are only two miles wide in each direction. Tankers requiring deep draft channels have limited alternative routing options should the waterway become unsafe.
Stakeholder reactions and next steps
Trading houses and oil majors are assessing security conditions on a vessel by vessel basis, the sources said, with no formal industry wide suspension order issued. Several companies have instructed tanker masters to loiter in safe holding areas outside the strait until the security situation clarifies.
A spokesperson for the United States Navy’s Fifth Command, based in Bahrain, declined to comment on specific commercial vessel movements but said the force “remains postured to ensure maritime security and stability in the region.”
The Strait of Hormuz has been the site of previous tanker seizures and attacks, most recently in 2019 when the U.S. blamed Iran for limpet mine attacks on several vessels. Iran denied involvement.
Wider context and industry outlook
The suspensions introduce a new variable into already tight global oil markets. Shipping analysts note that while the waterway remains technically open, the divergence between continuing transits and voluntary pauses creates uncertainty for charterers, insurers, and cargo owners.
Insurance underwriters are reviewing premium rates for vessels entering the strait, with war risk surcharges expected to rise in coming days, industry sources said. Higher insurance costs typically flow through to freight rates and ultimately to delivered cargo prices.
The development also raises questions about the viability of alternative export routes for Gulf producers. Only Saudi Arabia and the United Arab Emirates have operating pipelines that can bypass the strait, with combined capacity sufficient for only a fraction of regional export volumes.
The situation remains fluid, with military actions continuing and diplomatic efforts to de escalate the conflict showing no immediate progress as of March 1, 2026.
