One ship paid two million dollars just to pass through the Strait of Hormuz. That single data point tells you everything about the state of the world’s most important oil corridor right now.
Ships Remain Idle As The Clock Runs Out
US President Donald Trump issued a 48-hour announcement on Saturday, threatening to destroy Iran’s energy plants if free passage through the Strait of Hormuz is not restored by Monday night.
The warning – posted on Truth Social – came as maritime data showed that sea tanker movements had dropped by more than 90%. Hundreds of vessels remain idle on both sides of the waterway, pushing Brent crude above $100 a barrel for the first time since 2022.
Iran announced that the Strait of Hormuz was closed on March 4, three days after the US and Israel launched joint airstrikes against Iranian military targets on February 28.
Since then, Iranian forces have attacked at least 10 ships trying to pass through the corridor, killing five members of two ships.
Tehran has made it clear that it is not backing down. Iranian officials warn that they will target the region’s energy centers if their oil infrastructure is directly attacked.
The Strait of Hormuz. Image: CNN
The US Navy has tried to disrupt Iran’s ability to threaten ships. Admiral Brad Cooper, the head of US Central Command, said US warplanes bombed an underground facility in Iran that stores anti-ship missiles earlier this week, saying they had “reduced” Iran’s offensive capabilities. Iran’s response to Trump’s latest ultimatum: threats of broader retaliation.
Energy Shock Ripples Across World Markets
The scale of this disturbance has no modern equivalent. The International Energy Agency called it “the greatest challenge to global energy and food security in history.”
Brent crude reached $126 a barrel at its peak – the shutdown described as the biggest energy supply disruption since the oil crisis of the 1970s.
The economic pain extends beyond the pump. Moody’s supply chain leader Andrei Quinn-Barabanov warned that for many of the commodities affected by the crisis, inventories often close for several weeks, meaning shortages could emerge quickly if the disruption continues.
About 85% of polyethylene exports to the Middle East go through the Strait of Hormuz, meaning packaging, auto parts, and consumer goods all face higher costs. Aluminum, fertilizer, and helium prices have also increased.
Bitcoin Holds Ground As Crypto Watches Oil
Digital commodity markets don’t just sit outside. The US strikes on Iran and the blockade of the Strait of Hormuz have hit the global oil market, driving volatility to its highest levels since 2020 and forcing markets to revise expectations during interest rate cuts – a change that directly affects crypto prices.
Yet Bitcoin has shown a level of staying power that has surprised some traders. Even as oil prices fluctuated sharply and Goldman Sachs warned of prices of around $150 per barrel, Bitcoin rallied between $67,000 and $71,000, with falling open interest suggesting a cooling of speculation.
Featured image from Navy Lookout, chart from TradingView
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