Strait of Hormuz Crisis: 700 tankers pile up as security fears paralyse shipping amid US–Iran escalation, says report

Oil tanker traffic through the Strait of Hormuz has declined as security risks have increased amid escalating tensions in West Asia after the US-Israel strikes on Iran and the Islamic nations' retaliatory strikes. Shipping activities have almost halted due to a conflict involving more than 700 ships gathered on both sides of the strategic route, according to a report by the Turkish news agency Anadolu.

Located at the mouth of the Persian Gulf, the Strait of Hormuz connects the West Asia’s oil and liquefied natural gas production to global markets through the Gulf of Oman and the Indian Ocean. About 20 per cent of the world's daily oil consumption, or about 20 million barrels, passes through this strategic corridor.

Following the joint attack by the United States (US) and Israel on Iran at the weekend, ship operators halted crossings amid soaring insurance costs. International news agencies have quoted an analysis by the instant data company Kpler, saying that as many as 21 million barrels of oil were transported by 15 tankers on 27 February, rising to 21.6 million barrels by 18 ships on Saturday. However, on 1 March, only three tankers carrying 2.8 million barrels crossed the strait, the agencies said.

With an average daily flow throughout the year of 19.8 million barrels, shipments on 1 March recorded an 86 per cent decline from the average in 2026, Anadolu reported.

As of today, 706 non-Iranian tankers are waiting on either side of the strait, the agency said on 2 March. Of these, 334 crude oil tankers, 109 vessels carrying dirty petroleum products and 263 transporting clean petroleum products are positioned at various points across the Persian Gulf (west of the strait), the Gulf of Oman (east of the strait) and the Arabian Sea, it said.

Some reports suggested that these warnings were broadcast to ship crews operating in the Persian Gulf via the international hailing and distress frequency VHF Channel 16, yet no official statement has been issued confirming a formal closure of the chokepoint.

Iranian media have claimed that the Strait of Hormuz has been effectively shut.

United Kingdom Maritime Trade Operations (UKMTO) said in a statement on Sunday that the maritime security level for the Strait of Hormuz had been raised to "critical," the highest risk category.

Some major processors are considering run cuts of 20% to 30% as dozens of oil-laden tankers remain stuck in the Persian Gulf, said people with knowledge of these deliberations, the news outlet reported.

Major Asian markets like China, India, South Korea and Japan are among the most reliant on oil that needs to transit Hormuz, taking cargoes on long-term contracts from producers such as Saudi Arabia, Iraq and the United Arab Emirates.

These shipments usually take about 15 to 30 days to reach ports across Asia, making them tough to replace from more distant sources in the Americas, Europe, and Africa.

Iranian oil needs to transit Hormuz, although large volumes of the country’s crude on tankers at sea in Asian waters are creating a temporary buffer. Refineries typically maintain at least two to three weeks of crude inventory to buffer against short-term delays or supply disruptions.

Qatar halted its liquefied natural gas production on Monday, as Iran continued to strike Gulf countries in retaliation for Israeli and U.S. strikes against it. The attacks have also halted oil and gas shipments through the Strait of Hormuz, driving up global energy prices and shipping costs.

In view of ongoing geopolitical developments in the Middle East, the Minister of Petroleum & Natural Gas, Hardeep Puri reviewed the supply situation for crude oil, LPG, and other petroleum products with senior officials from the Ministry and PSUs on Monday

“We are continuously monitoring the evolving situation and all steps will be taken in order to ensure availability and affordability of major petroleum products in the country,” the ministry said in a statement.

(With inputs from Bloomberg, Reuters and Anadolu)