As tensions between the US and Iran continue to escalate, the Strait of Hormuz—one of the world’s most strategically valuable energy and cargo transport routes—is facing an unprecedented crisis of disruption. Following the latest US military attacks on Iranian missile launch sites and naval targets near the Strait of Hormuz, this maritime artery, carrying approximately one-fifth of the world’s oil trade, has almost come to a standstill. The shockwaves it has generated are far beyond the energy market, spreading along the complex global supply chain to shipping, manufacturing, and even people’s dinner tables.
From March 19th to 20th, local time, US military operations in the Middle East significantly escalated. The US Central Command explicitly announced that US forces were destroying Iranian naval targets threatening the Strait of Hormuz and nearby international shipping. Simultaneously, US media revealed that the Pentagon is planning an even bolder operation: a US 31st Marine Expeditionary Force of approximately 2,200 personnel is en route from Japan to the Middle East aboard an amphibious assault ship, expected to arrive within a week. This force could be used to seize Kharg Island, Iran’s largest crude oil export base, as leverage to force Iran to open the Strait of Hormuz.
This military action comes against the backdrop of deadly exchanges between Israel and Iran. Israeli Prime Minister Netanyahu acknowledged airstrikes on Iranian gas fields but stated he would “comply” with US President Trump’s demand to “suspend” further airstrikes on energy facilities. However, the direct involvement of the US military indicates that even with a slight easing of bombing of energy facilities, the military game over shipping lanes has only just begun. Former US Central Command Commander Frank McKenzie stated bluntly that occupying or destroying Kharg Island would cause “irreparable damage” to the Iranian and global economies. For the global shipping industry, the current state of the Strait of Hormuz is no longer “high risk,” but a de facto “blockage.”
Firstly, there is the out-of-control cost of insurance. With frequent attacks on merchant ships and casualties among seafarers, many insurance institutions have canceled or severely restricted insurance services for related routes. In response, Globalink has launched a preferential policy of offering free insurance. For specific information, please consult Globalink.
Secondly, the closure of the Strait of Hormuz affects far more than just car fuel tanks. Nobel laureate economist Joseph Stiglitz described the situation as “throwing a grenade” at the world economy. On the 20th,Trump presses for ‘de-escalation’ as oil pushes $120.
Whether it’s the US military’s threat to seize the islands or Iran’s “fee” plan, both indicate that the reopening of this vital global shipping artery is a long way off. Until the gunfire subsides, the global supply chain can only silently endure the prolonged pain of this “arterial blockage.”
Post time: Mar-20-2026
