The Strait of Hormuz is Closed, Oil Prices Rise, and Tankers Halt Operations

LONDON, MONDAY — The impact of the United States-Israel attack on Iran is increasingly disrupting the economy. Oil prices have surged. Shipping in the Strait of Hormuz has come to a halt due to closures by Iran. The global supply chain is also affected.

Oil prices in the Asian market at the opening of Brent trading in London on Monday (2/3/2026) rose to 80 US dollars per barrel from the closing price of 72.87 US dollars per barrel in trading on Friday (27/2/2026). This represents a price increase of 13 percent.

Since the attack by Israel, supported by the US, on Iran on Saturday (28/2/2026), oil prices have continued to rise. At the beginning of last week, Brent crude was still sold at 71.24 US dollars per barrel.

Meanwhile, West Texas Intermediate, the light crude oil produced in the United States, was sold for around 72 US dollars per barrel on Monday morning. This price, according to data from the CME group, increased by approximately 7.3 percent from the trading price on Friday, which was 67 US dollars per barrel.

The Director of the Middle East and OPEC at the analysis firm Kpler, Amena Bakr, estimates that oil prices could continue to rise to 99 US dollars per barrel.

Traders have revealed that oil supplies from Iran and other places in the Middle East will slow down or come to a halt. Attacks in Iran and several Gulf countries have restricted the ability of these nations to export oil worldwide.

The situation has worsened due to Iran closing the shipping routes of the Strait of Hormuz. Two ships sailing through the strait have reportedly also become targets of attacks.

The Strait of Hormuz serves as a supply route for 20 percent of the world's oil. The closure of the strait has not been fully enforced by Iran. Iranian and Chinese ships are still observed to be allowed to pass through the narrow strait that separates Iran from the Arabian Peninsula.

Major shipping companies around the world have issued statements regarding the cessation of voyages through the Strait of Hormuz. Additionally, the waters of the Red Sea have become dangerous again after the Houthis in Yemen declared attacks on vessels associated with the United States and Israel.

Kpler analyst, Michelle Brouhard, stated that high oil prices are the "Achilles' heel" (point of weakness) of U.S. President Donald Trump. Moreover, Trump promised prosperity for the lower-middle class through the rhetoric of making America great again (MAGA).

Prolonged warfare is likely to result in higher prices for crude oil and fuel, according to energy experts. Consumers will also spend more on food and other goods, even as many people are already feeling the effects of high inflation.

"It is possible that alternative shipping routes could be used to avoid the Strait of Hormuz. However, the closure of Hormuz would still impact oil supplies by 8 million to 10 million barrels per day," said Jorge Leon, an analyst at Rystad Energy.

In theory, member countries of the Organization for Economic Cooperation and Development (OECD), which are partners of the United States, have oil reserves for up to 90 days. However, difficulties in procuring oil due to prices rising above 100 US dollars per barrel could occur.

"If the closure of the Strait of Hormuz continues, the availability of oil reserves in these countries will decline," Bakr said.

In addition to oil prices, gas prices have also risen. Qatar, one of the world's major gas suppliers, has been affected by the closure of the Strait of Hormuz.

At least 60 French merchant ships are trapped in the Persian Gulf due to the closure of the Strait of Hormuz. Laurent Martin, an executive of the shipping company Armateurs de France, stated that the French Navy has ordered the merchant ships to seek safe harbor in the Persian Gulf.

He added that French commercial ships are not a priority target in the US-Israel conflict that is attacking Iran. The ships and their crew can dock at ports in Gulf countries.

The Chief Executive Officer of Armateurs de France, Edouard Louis-Dreyfus, stated to Radio France Internationale that French ships have been ordered not to leave port. Vessels in the vicinity of the Red Sea and the Gulf of Oman have been instructed to steer clear of the war zones in the Strait of Hormuz and the Persian Gulf.

"This is a dangerous situation for commercial shipping. A US military base is located near a civilian port in a Gulf state," he said.

In addition to France, the naval fleets of countries such as China, Japan, South Korea, Taiwan, and European nations are present in the Persian Gulf. They are primarily involved in the transportation of oil and gas.

Armateurs de France has taken steps for safety by reducing the number of crew members on ships and repatriating some of the other crew members to their home countries.

In addition, two major shipping companies, namely Mediterranean Shipping Company (MSC) and Maersk, issued a warning for their fleets in the Persian Gulf on Sunday.

Maersk has announced that it will suspend sailings through the Strait of Hormuz for safety considerations. "The safety of our crew, vessels, and our customers' cargo is our priority. We are halting sailings through the Strait of Hormuz until further notice," stated Maersk.

MSC announced that their fleet in the Persian Gulf or en route to the area has been instructed to dock at the nearest safe port. The suspension of MSC services will remain in effect until further notice.

The network of commercial shipping companies from Armateurs de France has also canceled voyages through the Suez Canal and the Red Sea due to safety and security considerations. The US-Israel attacks on Iran have triggered a response from the Iran-backed Houthi group against ships in the Red Sea.

The Times of Israel reports that the Houthis announced renewed missile and drone attacks on ships in the Red Sea. The Houthis had previously halted attacks in the Red Sea as part of a recent peace agreement with the US.