The US-Iran war has triggered the largest oil supply disruption in recorded history. Iran has blocked commercial shipping through the Strait of Hormuz, the narrow chokepoint that normally carries around one-fifth of the world's oil supply. Daily transits have fallen 90 to 95 percent since the conflict began, according to shipping intelligence firm Kpler, leaving hundreds of tankers stranded in the Persian Gulf.
International Brent crude has surged to nearly $113 per barrel, a more than 50 percent increase from pre-war levels. Marine insurance costs for vessels attempting transit have skyrocketed from under 1 percent of vessel value before the war to between 3.5 and 10 percent today. At least 30 confirmed incidents have been reported, including attacks on 20 commercial vessels and 10 oil, gas, and port facilities.
Shipping companies face an additional $393 million in daily fuel expenses due to rerouting. Trump administration officials have discussed offering military escorts for vessels transiting the strait, but no concrete timeline has been established. Energy security concerns are mounting across Asian economies heavily reliant on Middle Eastern crude. The situation has no clear resolution in sight.