A projectile hit a vessel in the Strait of Hormuz on September 12-13, according to the UK Maritime Trade Operations. The strait, which is 21 miles wide at its narrowest point, typically handles 20 million barrels of oil daily, representing 20% of global supply.
Shipping traffic has dropped significantly, with daily transits falling from over 130 ships to between 5 and 10. Oil flow volumes have occasionally declined by 90%, reaching roughly 2 million barrels per day during periods of disruption.
The incident follows the temporary closure of Saudi Arabia's East-West pipeline, which usually transports 4 to 5 million barrels of oil daily, after a drone attack. This pipeline serves as a key alternative route bypassing the strait.
Brent crude prices exceeded $100 per barrel in September 2026. Insurance costs for vessels in the region have risen, and underwriters are currently updating their risk models in response to the ongoing security situation.
