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Strait of Hormuz closure (2026 Iran war)
What it is
US and Israeli operations against Iran from 28 Feb 2026 triggered Iranian action against shipping, and the Strait of Hormuz was effectively closed from 4 Mar. Transits fell from roughly 130 a day to single digits, and the IEA called it the largest supply disruption in the history of the oil market
Around 20-25% of seaborne crude and 19% of LNG normally pass through it. Brent moved past $120 at the peak and QatarEnergy declared force majeure
Impact on industries
- India imports over 85% of its crude and a large share transits Hormuz, so the import bill, the current account and inflation all move together
- Refining, fertiliser, petrochemical and city gas economics are all set by feedstock that has repeatedly doubled in price
- War-risk insurance withdrawal is as binding as the physical closure - a cargo that cannot be insured cannot sail regardless of the route
- Reopening is a negotiation rather than a military outcome, with Iran linking it to sanctions relief, so the timeline is political