The Strait of Hormuz, through which roughly 20% of the world's seaborne oil trade normally passes, remains partially blocked since the US-Israel war with Iran began in late February 2026. Iran and Oman are close to a framework agreement on managing traffic through the strait, though Tehran cautions a deal wouldn't mean the waterway reopens fully right away.
At the same time, the conflict has widened to the Bab al-Mandab strait off the coast of Yemen — a key route for Saudi Arabia, which has used it as an alternative to Hormuz. Iran-backed Houthi forces are threatening to disrupt shipping there. Oil prices remain elevated compared to pre-war levels, and global shipping continues to seek routes around both chokepoints.
