World · 2 March 2026
Iran Does Not Need to Fire a Single Shot to Shut Down Global Oil. Insurers Are Doing It for Them.
Photo by Sascha Hormel on Pexels
The Strait of Hormuz has not been formally closed. No Iranian warship is physically blocking ships. But 150 tankers dropped anchor in open Gulf waters on Sunday because their insurance had been cancelled or premiums had tripled. Shipping analysts describe this as a "de facto closure," comparable to the Red Sea disruption after Houthi attacks but with far higher volumes at stake. Around 20% of the world's crude oil and a significant share of global LNG moves through the 33-kilometre-wide strait. Iran does not need a blockade when fear alone is enough.
Reported by Kpler · How we write briefs