US Military's Blockade on the Hormuz Strait

The US military's Central Command announced a blockade of the Hormuz Strait, stating it would enforce the blockade impartially on vessels from all nations entering or leaving Iranian ports. The blockade is designed to not impede neutral transit passage.

Impact on Global Oil Trade

The Strait of Hormuz is critical as it previously facilitated about 20% of global oil and gas trade, primarily to Asian markets. A recent sanctions waiver by the US has allowed countries like India to import Iranian oil.

Straight Traffic Reduction

• Despite a temporary ceasefire, tanker traffic through the strait remains severely reduced.
• Only 58 commodity carriers have passed through the strait since the US-Iran ceasefire.
• There have been 90% fewer crossings compared to peacetime levels.
• From March 1 to April 13, 244 out of 376 passages were by oil and gas tankers, mostly moving east.

Iran's Response

Iran's Revolutionary Guards have warned that any foreign military vessels approaching the strait will be considered as violating the ceasefire and will face decisive force.

Impact on Oil Supply

• Restricting Iranian exports could impact global oil supply significantly.
• Iran shipped 1.84 million barrels per day (bpd) in March and 1.71 million bpd in April, compared to a 2025 average of 1.68 million bpd.
• Pre-war production levels have resulted in over 180 million barrels of Iranian oil presently floating on ships.