Commercial vessels have been barred from the Strait of Hormuz since Tuesday after a night‑long clash between US and Iranian forces. Both sides exchanged fire, striking each other’s assets in the narrow waterway that links the Persian Gulf to the Arabian Sea. The sudden shutdown halted the flow of oil‑laden tankers that normally transit the route daily, charterers scrambled for alternative routes.

US naval units targeted Iranian missile and drone launch sites they said had fired on three American warships transiting the strait. Tehran denied involvement, accusing Washington of fabricating a pretext for escalation. The strait handles roughly a fifth of global oil shipments, so any disruption instantly pressures spot prices and forces carriers onto longer, costlier routes. Analysts warn prolonged closure could lift freight costs.

Oil benchmarks jumped over two percent as traders priced in supply uncertainty, while insurers reported a surge in war‑risk premiums for vessels rerouted around the Cape of Good Hope. Energy firms with exposure to Middle‑East crude face tighter margins until traffic resumes. Shipping firms now reassess hedge positions amid volatile pricing.