Commercial shipping through the Strait of Hormuz remains severely disrupted after recent clashes between the US and Iran. The US targeted missile and drone launch sites in Iran, accusing them of attacking three US warships transiting the strait. This follows heightened tensions and attacks on tankers. As of May 8, 2026, the strait is effectively closed to commercial shipping, with traffic drastically reduced from its pre-war levels.
On July 7, a Qatari LNG tanker, the Al Rekayyat, and a Saudi crude oil tanker, the Wedyan, were attacked near the Strait of Hormuz. The Al Rekayyat was reportedly at risk of exploding due to a fire in its engine room. These incidents led the US Navy-led Joint Maritime Information Centre (JMIC) to raise the threat level for transiting the strait to "severe," the highest level since June 15. Qatar's foreign ministry condemned the attack on the Al Rekayyat and held Iran responsible, while Saudi Arabia similarly condemned the attack on the Wedyan.
In response to these attacks, the White House revoked a license granted to Iran in June that allowed it to sell oil, a concession that was part of an agreement to reopen the strait. This move, described by analysts as a significant step, came with a warning to Iran that its actions were "wholly unacceptable" and would face consequences. Oil prices reacted sharply, with Brent crude nearing $76 a barrel, an increase of nearly 6%.
Shipping traffic through the strait has been volatile and significantly below pre-war levels. Before the conflict, approximately 120-140 vessels, including oil tankers moving about 20 million barrels per day, transited the strait daily. Over the past week, traffic has ranged from 25 to 40 ships daily, with only 16 vessels transiting on July 7, the lowest in nearly three weeks. This represents just one-fifth to one-third of pre-war levels. The "start-stop" nature of the strait's reopening continues to inject volatility into Middle Eastern tanker markets, with average daily rates to load a ship in the Gulf reaching almost $300,000 a day, up from below $200,000 a day the previous week.
