WATCH: How traffic dried up in the Strait of Hormuz since the Iran war began

Business WATCH: How traffic dried up in the Strait of Hormuz since the Iran war began March 4, 2026 4:36 PM ET Camila Domonoske The effective closure of the Strait of Hormuz, a vital waterway through which about 20% of the world's crude oil and natural gas typically passes, has roiled global energy markets. "When analysts have looked at the things that could go wrong in global oil markets, this is about as wrong as things could go at any single point of failure," says Kevin Book, the co-founder of the research firm Clearview Energy Partners. Loading... Traffic through the normally busy strait faded away in the first few days of the conflict, as Iran declared the strait closed and attacked some ships that attempted the route. Global crude oil prices — already elevated due to the risk of war — have shot up more than 10% since the U.S. and Israel attacked Iran. Natural gas prices in Europe and Asia, which rely heavily on imported liquefied natural gas, or LNG, have risen even more sharply. About 20 million barrels of oil per day typically pass through the strait. Some countries, including the U.S., do have stockpiles, and some producers in the Gulf region can redirect oil away from the strait to other ports. But those changes can't make up all of the shortfall. Recent attacks have struck oil and gas infrastructure in nearby countries, including Saudi Arabia, Qatar and UAE. That raises questions about the feasibility of some alternate routes for oil. And if infrastructure is damaged, the hit to production and exports could even outlast the closure of the strait. Middle East conflict Satellite images show Iran school strike hit more buildings than earlier reported Middle East conflict The U.S. sinks Iran's ships and slams its missile launchers as the war enters Day 5 Meanwhile, the strait's closure has cascading effects for the industry. Iraq, a major oil producer, is having to shut down production in some of its largest oil fields because without being able to export it...