Iran’s military activity in the Strait of Hormuz, alongside a temporary pause in the US-Iran conflict, has once again highlighted the uncertainty facing global energy markets. On Monday, Iran’s state broadcaster IRIB reported that Iranian forces had blocked six vessels attempting to pass through what Tehran described as an “illegal and dangerous” route in the southern part of the Strait of Hormuz, after the vessels had switched off their navigation and positioning systems. One of the vessels reportedly met with an accident, while the others were forced to return to the Persian Gulf. Tehran alleged that the vessels had attempted to enter the area under provocation from the US military. The incident is significant because the Strait of Hormuz is not merely a maritime passage—it is one of the world’s most critical chokepoints for global energy security. In the first half of 2025, an average of around 20.9 million barrels of oil and petroleum products passed through the strait every day, accounting for approximately 20 percent of global petroleum liquids consumption and nearly one-quarter of seaborne oil trade. During the same period, more than 20 percent of global LNG trade also passed through the strait. Yet, amid heightened military tensions, the global oil market has experienced temporary relief. Following reports of a suspension of US-Iran attacks, Brent crude prices fell by nearly 5 percent to $91.89 per barrel, while West Texas Intermediate (WTI) crude declined by 5.23 percent to $84.64 per barrel. Analysts say the decline does not signal an end to the crisis; rather, it reflects a temporary reduction in the market’s “risk premium.” A lasting sense of stability in energy markets will depend on the full restoration of normal commercial shipping through both the Strait of Hormuz and the Bab el-Mandeb, two strategically vital maritime routes. The detention of six vessels therefore serves as a reminder that, even with the door to diplomacy still open, the Strait of Hormuz remains one of the greatest geopolitical risks facing the global economy.

Author: A.B.M. Kamrul Hasan, Columnist and Political Analyst