Hormuz risk halts energy flows but Iran keeps moving oil — for now
While much of the world’s attention has focused on threats to Gulf oil exports and surging prices, the escalating conflict also exposes a key vulnerability for Tehran's own oil industry.
The US-Iran war has brought oil and gas shipments through the Strait of Hormuz to a virtual halt since the conflict erupted on Feb. 28, spiking global energy prices — but not all traffic has ceased in the strategic waters. At least five crude-laden tankers have left Iranian ports in the seven days since the conflict erupted, Reuters reported on March 6.
As those Iranian cargos are on the move, shipments from neighboring Gulf producers remain stuck as the strait stays closed, cutting global markets off from a vital artery through which roughly a fifth of the world’s crude normally flows. The sudden disruption has pushed benchmark Brent crude prices near $90 per barrel amid fears of a supply shock, concerns that have been compounded by Iranian strikes on Gulf energy infrastructure.
Although damage has been limited, the attacks have been serious enough that Qatar halted liquefied natural gas production as a precaution on March 2. Oil and gas facilities in Saudi Arabia, the United Arab Emirates and Bahrain have also come under fire.
While much of the world’s attention has focused on threats to Gulf oil exports and surging prices, this escalating conflict also exposes a key vulnerability closer to home: Iran's own oil industry. While Iran was OPEC’s third-largest producer in 2025, crude exports are the economic lifeblood of the embattled regime. That could be playing into military strategy.
