Strait of Hormuz Blocked: 12 Days of Strikes Paralyze 20% of Global Oil Flow

Supply chain managers are grappling with the most severe chokepoint disruption since the Suez Canal blockage, but with far greater energy implications. The 12th day of US strikes on Iran and the effective closure of the Strait of Hormuz mean that over 18 million barrels of oil per day cannot traverse the waterway. Tankers are idling, charter rates for LNG carriers are spiking, and manufacturers from Europe to Asia are bracing for prolonged fuel price volatility and component shortages. With no diplomatic resolution in sight, contingency plans for alternative routing and strategic stockpiling are being activated.

The United States has entered a 12th consecutive night of airstrikes against Iran, escalating a crisis that has effectively closed the Strait of Hormuz and threatened global energy markets. The US Central Command stated on Wednesday, July 22, 2026, that the attacks aim to "further degrade Iran's ability to threaten civilian mariners and commercial vessels transiting regional waters." This marks a dangerous new phase in the conflict, with both sides increasingly targeting civilian infrastructure—a potential war crime under international law if not justified by military necessity. President Donald Trump issued an explicit threat on social media, warning that for each Iranian attack on a ship in the strait, the US would "bomb and destroy ONE BRIDGE OR POWER PLANT." Iran's Foreign Minister Seyed Abbas Araghchi quickly responded with an "eye for an eye" doctrine, and within hours, an Iranian missile struck the Jordanian city of Aqaba, dangerously close to Israel. Air defense systems intercepted projectiles over Tehran, and security alerts were raised in Bahrain and Saudi Arabia, underscoring the regional spillover.

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Brent crude futures have surged past $100 per barrel for the first time since 2022, and US gasoline averages have climbed above $4 per gallon.

The Strait of Hormuz is the world's most critical energy chokepoint, with roughly 20% of global oil supply—about 18–20 million barrels per day—transiting its narrow waters. Since the 1979 Iranian Revolution, Tehran has periodically threatened to close the strait as a strategic lever. Now, a combination of US military action and Iranian retaliatory attacks on shipping and energy facilities has effectively done so. The closure has paralyzed tanker traffic, sent crude prices soaring, and disrupted the just-in-time supply chains that underpin global manufacturing and fuel distribution. Insurance premiums for vessels operating in the region have skyrocketed, and shipping companies are rerouting around the Cape of Good Hope, adding weeks to delivery times and millions in additional costs per voyage.

The targeting of civilian infrastructure represents a qualitative escalation. Iran has responded to US strikes by hitting power plants, desalination facilities, and other non-military targets in neighboring Gulf states, aiming to pressure US allies and create leverage. The attack on Aqaba, a Jordanian port city near Israel, demonstrates Iran's reach and willingness to widen the theater. For the United States, the campaign is politically charged: midterm elections are only months away, and rising fuel prices are eroding consumer confidence, putting pressure on the administration to either de-escalate or achieve a decisive victory. Diplomacy, however, has stalled, with both sides publicly hardening their positions.