The Strategic, Supply & Security Challenges in the Strait of Hormuz

In logistics, we’re used to dealing with disruption. But every so often, something happens that reminds you just how quickly things can change.

Right now, the Strait of Hormuz is one of those situations.

More Than a Shipping Route

The Strait of Hormuz isn’t just another stretch of water. Around 20% of the world’s oil and liquefied natural gas passes through it.

When everything is running normally, it’s easy to overlook. But when something goes wrong, the impact is felt across the world very quickly.

What’s Happening Right Now

Since late February 2026, tensions between Iran, the United States and Israel have escalated sharply.

What started as increased risk has now turned into something much more serious.

Shipping through the Strait has almost stopped. Where there were once over 100 ships passing through each day, there are now only a handful. More than 1,000 vessels are currently waiting or unable to move freely through the region.

Some ships are still getting through, but only in very limited cases. For most commercial shipping, normal operations have effectively paused.

All figures are correct at the time of writing (17 March 2026), although the situation continues to evolve.

On top of that, there have been attacks on commercial vessels, and clear warnings that safe passage cannot be guaranteed. Even with military presence in the area, the risks remain high.

For those of us working in logistics, this isn’t just news. It’s something we’re actively dealing with. Ships are being rerouted, journeys are getting longer, and decisions are having to be made quickly, often with limited information.

Why This Matters

The effects don’t stop at the Strait itself.

Oil prices have risen, at times approaching $120 per barrel. That feeds into fuel costs, transport and manufacturing.

Shipping is becoming more expensive too. Insurance costs are rising, routes are longer, and capacity is tighter.

All of this adds pressure to supply chains. Deliveries take longer, planning becomes more difficult, and costs increase.

These are real, day-to-day challenges for businesses.

What Businesses Need to Think About

Situations like this change how decisions are made.

In more stable times, logistics is often about cost and efficiency.

Right now, it’s about risk.

Businesses are starting to look more closely at:

• alternative routes
• how flexible their supply chains are
• what happens if delays continue

At John Pipe International, these are the conversations we’re having with clients more and more. It’s about helping them understand the risks and making sure they have options.

Looking Ahead

Events like this are a reminder that global trade doesn’t operate in isolation. It’s affected by politics, security and events that can change very quickly.

For businesses, the challenge is not just reacting when disruption happens, but being prepared for it in advance.

Those that can adapt will be in a much stronger position.