Oil hope for India? Iran says Strait of Hormuz closed to US, Israel, Europe and western allies, ships 'will certainly be hit'

Iran’s Islamic Revolutionary Guard Corps (IRGC) announced that the Strait of Hormuz is now closed to vessels from the United States, Israel, Europe and their Western allies. The statement was issued on Thursday (March 5) through Iran’s state broadcaster IRIB, following several days of uncertainty around one of the world’s busiest maritime chokepoints.

According to the IRGC, the decision aligns with what it described as Iran’s rights under international law during wartime. The force warned that ships linked to the United States, Israel, Europe and their supporters would face military action if they attempt to pass through the waterway.

"We had previously said that, based on international laws and resolutions, in times of war, the Islamic Republic of Iran will have the right to control the passage through the Strait of Hormuz," said the IRGC, according to state broadcaster IRIB. The strait has effectively been inactive since the United States and Israel launched a joint military campaign against Iran on Saturday. The escalation has triggered a sharp rise in global oil prices and heightened concerns about disruptions to the world economy. Earlier in the week, Iran indicated it would allow only Chinese-flagged vessels to pass through the strait, describing the move as a sign of appreciation for Beijing’s stance toward Tehran since the conflict began. The decision is particularly significant because the Strait of Hormuz is the only maritime outlet for ports located in the Persian Gulf.

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Since the latest round of hostilities started, Iran has maintained control over the passage, placing additional pressure on global supply chains. Many shipping companies and vessel operators have halted crossings, unwilling to risk entering the region while military activity continues in the Gulf. Roughly one-fifth of the world’s seaborne oil passes through the Strait of Hormuz, making it a critical artery for global energy markets.

Geographically, the Persian Gulf functions as a cul-de-sac bordered by the coasts of Kuwait, Iraq and Iran. Despite this, the strait remains vital for regional trade. It is the only maritime access point to Dubai’s Jebel Ali port, the world’s tenth-largest container terminal and a key distribution hub serving more than a dozen countries. Historically, the Strait of Hormuz has never been fully closed to commercial shipping. Even during the Iran-Iraq war between 1980 and 1988, merchant vessels continued operating despite frequent tanker attacks.

Real-time data from the Marine Traffic tracking platform shows clusters of vessels waiting outside the waterway. Numerous tankers are anchored north near Kuwait and off the coast of Dubai, while Iran’s own merchant ships remain stationed near the port of Bandar Abbas on the eastern side of the strait. Additional groups of ships are also gathered just beyond the entrance to the Hormuz channel, awaiting developments.

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