The Strait of Hormuz, the vital waterway for roughly 20% of global oil shipments, is in crisis. Daily vessel traffic has collapsed from over 100 ships to as few as 12-29. Major shipping lines Maersk and Hapag-Lloyd have suspended all transits.
The disruption follows US and Israeli military operations in February 2026. Iran responded with mine-laying and formal declarations to close the strait. By April, an estimated 2,000 ships were stranded in the Persian Gulf.
Oil markets have reacted sharply. Brent crude has surged past the $100 per barrel mark. US crude saw a 6.8% single-month spike in April. The longer voyages required to avoid the strait, such as around the Cape of Good Hope, are adding weeks and significant cost to shipments.
In an unexpected development, Iran is reportedly exploring a Bitcoin-based settlement system called “Hormuz Safe” for maritime insurance and transit fees. This would attempt to bypass traditional financial channels closed by international sanctions. The crisis has also spawned crypto-related scams targeting affected parties.