Thousands of ships and their crews are stranded in the Persian Gulf, unable to traverse the Strait of Hormuz into open waters, after ceasefire talks between Iran and the United States broke down on Sunday.
The ongoing 2026 conflict involving Iran has severely disrupted international shipping through the strait, a critical route for global energy trade. Military attacks, naval blockades, and sea mines have forced many vessels to halt or reroute, causing congestion and delays. Shipping costs have surged due to higher fuel prices and insurance premiums, while reduced transit has strained global supply chains, increasing inflation and threatening energy and food security worldwide.
Since yesterday, 23 vessels have squeezed through the 21-mile-wide waterway, of which 16 are linked to Iran, according to the BBC. On a typical day before the conflict began on Feb. 28, an average of 140 vessels passed through the strait. Many of these would have carried API Group III base oil from Bahrain, Qatar, and Abu Dhabi, which together host a combined 20% of global capacity.
The disruption is hitting Asia the hardest, as the region is heavily dependent on Middle Eastern fossil fuels. About 40% of its energy imports originate from the other side of the strait, according to research by energy think tank Ember.
Asian crude imports have plummeted to 19.2 million barrels per day, down from a first-quarter average of 25 million bbl/d, according to Kpler, and refined product exports are at their lowest level since 2017.
Speaking publicly, Sultan al-Jaber, chief executive of Adnoc, stated that the waterway is not open and that access is being tightly restricted and controlled. Adnoc’s Ruwais refinery, which produces API Group III base oil, was attacked by Iranian drones and is now closed.