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On March 2nd, 2026, 2 days after America had first launched a military campaign against Iran, Iran officially severely restricted ships’ access to the vitally important Strait of Hormuz. Iran has threatened that if any vessel dares to trespass, it will attack (Reuters). The promise was valid; prior to February 27th, the Strait held more than 100 transits per day. However, from March, only around 10 were let through daily (CSIS).

So then, why is this Strait so important that it made America announce it is going to use naval ships to escort its own vessels? Are there no safer alternatives than to use force? The answer is, shockingly, no. But firstly, let’s clarify why the Hormuz Strait is important geographically.

The Strait of Hormuz connects the Persian Gulf to the Arabian Sea, and it is the only route of water that connects the Persian Gulf to another body of water (Arabian Sea) that is then linked to the Indian Ocean and the rest of the world. Countries around the Persian Gulf, such as Saudi Arabia, Iraq, Iran, Qatar, UAE, Kuwait are oil producers that contribute notably to the global oil supply chain. These oils are then exported through the Strait of Hormuz, and together, the oil transit through it sums to approximately 20% of the global oil and oil-derived products (discoveryalert.com).

Image adopted from: GIS Geography

As you can see in the map, in order for vessels to exit the Persian Gulf, it has to leave through the Strait of Hormuz; therefore, options such as the Suez Canal or other alternatives are only applicable after ships have left the Persian Gulf.

What has this impacted?

The most direct impact is the temporary jump we would see in oil prices. For instance then, the price of Brent crude oil on March 9th, 12:28 pm is 93.16 USD. While the price range of this oil between March 2025 to January 2026 was between 60 to 75 USD. We are able to use this type of oil as an example for a trend since it accounts for approximately two-thirds of the world’s traded oil. 

Another direct impact that is reported right now is that multiple companies that originally provided insurance for the oil trading business have increased their charged fees due to the increased possibility of the ships being attacked. This originally may lead to a halt in the trades since people would stop sending vessels there due to the lack of insurance affordability. However, the American government has tried to counteract this halt by providing re-insurance to insurance companies (Global News).

Past references of this situation

Although this sudden, unexpected act of closing the Strait of Hormuz was indeed shocking, punitive measures relating to the Hormuz happened in the past as well. For instance, in 2011-2012, Iran’s president, Mohammad Reza Rahmi threatened the closure of the strait starting from December 28 2011. That led to a rise of around a week in oil prices before it dropped (congress.gov). Moreover, there were several other times that Iran has threatened the closure of the strait, but in the past, it was never fully achieved, nor did Iran technically attack any ships for the specific reason of trespassing. In the past, the government of Iran had never taken formal actions in regard to their threats; however, as we can see, this time the circumstances are slightly more severe due to the effectiveness of their execution and lockdown.

Severity evaluation (opinion-based)

The long term restriction of access to the Strait of Hormuz is illegal under the international law set by the United Nations. Asides, the US has already promised some naval escort if necessary (Navy Times, a quote from Trump). 

Therefore, the long-term closure is mostly questionable since other countries might take legal actions against the restriction. 

Conclusion

In conclusion, the closure of the Strait of Hormuz could be classified as a tactic that is used strategically in order to leverage Iran in its position against the US, given the context of the Iran-US war. The decision to close has caused temporary consequences, such as the rise in oil prices, as well as the rising insurance rates for specific companies. 

The full scope of consequences is still unclear, but in the meantime, the regional war continues.

Work Cited:

Ceder, Riley. “Trump Says US Navy Could Escort Ships through Strait of Hormuz.” Navy Times, Navy Times, 3 Mar. 2026, http://www.navytimes.com/news/your-navy/2026/03/03/trump-says-us-navy-could-escort-ships-through-strait-of-hormuz/?utm_source.

Iran Conflict and the Strait of Hormuz: Impacts on Oil, Gas, and Other Commodities | Congress.Gov | Library of Congress, http://www.congress.gov/crs-product/R45281. Accessed 14 Mar. 2026.

Iran Vows to Attack Any Ship Trying to Pass through Strait of Hormuz | Reuters, http://www.reuters.com/world/middle-east/iran-vows-attack-any-ship-trying-pass-through-strait-hormuz-2026-03-02/. Accessed 14 Mar. 2026.

Prétat, Harrison, et al. “No One, Not Even Beijing, Is Getting through the Strait of Hormuz.” CSIS, http://www.csis.org/analysis/no-one-not-even-beijing-getting-through-strait-hormuz. Accessed 14 Mar. 2026.

Rabinovitch, Ariel. “As Iran Chokes Strait of Hormuz, U.S. Vows $20B for Maritime Reinsurance – National.” Global News, Global News, 6 Mar. 2026, globalnews.ca/news/11719504/united-states-iran-war-insurance-agreement/.