Nearly 1,500 commercial vessels are stranded in and around the Strait of Hormuz as the Iran war enters its fourth month, triggering one of the worst maritime disruptions since the Covid-era supply chain crisis. Oil tankers, LNG carriers, cargo ships and container vessels remain trapped amid military tensions, exploding insurance costs and fears of fresh attacks in the narrow waterway through which nearly one-fifth of global oil and LNG supplies normally pass.
The crisis began on February 28 after the United States and Israel launched coordinated strikes on Iranian military and nuclear targets. Iran retaliated with missile and drone attacks and quickly moved to choke traffic through the Strait of Hormuz, the world’s most critical energy chokepoint. Shipping companies suspended sailings almost immediately after vessels were attacked, sea mines were reportedly laid and insurers withdrew war-risk coverage.
Before the conflict, about 125 to 140 vessels crossed the strait daily. Now, maritime tracking agencies estimate that traffic has fallen to a trickle. According to Reuters and UN-linked maritime estimates, nearly 20,000 seafarers remain stranded aboard ships across the Gulf region, many unable to disembark for weeks or months.
The financial damage is mounting by the day. Freight rates for crude tankers from the Gulf to Asia reportedly surged beyond $500,000 a day at the peak of the crisis, several times higher than pre-war levels. Shipping firms are also facing massive fuel, insurance and crew-related costs while vessels sit idle. Protection and indemnity insurers either suspended coverage or imposed steep war premiums, making passage through Hormuz commercially unviable for many operators.
The crisis has rippled through global trade networks. Exporters in the Gulf, India, China and Europe are grappling with delayed shipments, contract disputes and soaring logistics bills. Several companies have rerouted cargo around Africa’s Cape of Good Hope, adding 10 to 14 days to voyage times and sharply increasing fuel consumption. Middle East crude exports have reportedly fallen by nearly half compared with pre-war levels.
India is among the vulnerable economies. Indian refiners, petrochemical firms and exporters depend heavily on Gulf shipping routes. Dozens of Indian-linked vessels and hundreds of Indian sailors are believed to be caught in the disruption. Earlier reports indicated that at least 38 Indian ships were stranded in the Persian Gulf during the peak of the crisis.
For sailors trapped at sea, the humanitarian strain is becoming severe. Maritime welfare organisations report growing fatigue, anxiety and shortages of supplies on some vessels. Crews are spending weeks under the constant threat of drones, missile attacks or naval interception. Some sailors have reportedly refused to enter the Gulf despite higher danger pay. Families back home are struggling with uncertainty as crew rotations remain suspended.
The broader economic impact may last well beyond any ceasefire. Analysts warn that even if diplomacy succeeds and the strait reopens fully, global shipping schedules, insurance markets and energy supply chains could take months to normalise. Oil prices remain elevated because traders fear renewed instability in the Gulf.
The Strait of Hormuz has long been described as the artery of global energy trade. Today, it has become a symbol of how quickly geopolitical conflict can choke the world economy — leaving ships motionless, exporters bleeding money and thousands of sailors stranded in a floating war zone.
