US hits 90 Iranian targets as Strait of Hormuz shipping grinds to halt

For energy traders and macro investors, the Strait of Hormuz crisis is no longer a tail risk—it’s a current event. With traceable vessel transit “effectively grinding to a halt,” the immediate impact will ripple through Brent and WTI futures, LNG spot markets, and currencies of oil-importing nations. The 90-target US strike and Iran’s subsequent attacks on Gulf hosts of US forces signal that the brief window of safe passage has closed, stoking volatility across commodities and equities.

The Strait of Hormuz, the narrow sea passage that handles roughly one-fifth of the world's petroleum traffic, has seen shipping traffic effectively collapse following a sharp escalation in hostilities between the United States and Iran. According to data from UK-based Lloyd's List Intelligence, transit by traceable vessels through the US-coordinated sea lane off Oman has “effectively grind[ed] to a halt.” The development marks a dangerous new phase in a conflict that began on February 28, 2026, when the US and Israel launched military operations against Iran, and it threatens to upend a fragile interim ceasefire that had offered only a 60-day window of safe, toll-free passage for commercial shipping.

“

If shipping lanes remain closed for several weeks, global oil inventories will draw down rapidly, pushing benchmark prices well above $100/barrel.

The trigger for the latest confrontation came on Tuesday, July 7, when Iran targeted three oil tankers in the strait. The attacks shattered the truce and drew an immediate response from Washington. By late Wednesday, July 8, the US military had conducted a second wave of strikes—this time hitting approximately 90 targets across Iran, with the stated aim of degrading Tehran's capability to threaten freedom of navigation. In retaliation, Iran fired missiles at Bahrain, Kuwait, and Qatar, all of which host American forces. The tit-for-tat exchange has not only paralyzed the waterway but also raised the specter of a wider regional conflict, as Gulf states find themselves directly in the line of fire.

The economic implications are severe and immediate. The Strait of Hormuz is a chokepoint for global energy markets: roughly 20 million barrels of oil pass through it each day, along with substantial liquefied natural gas (LNG) volumes. Any disruption to this flow rapidly transmits to crude prices, gasoline costs, and LNG spot markets worldwide. During earlier phases of the conflict, the UK Prime Minister Sir Keir Starmer warned that household energy bills would be hit if the situation deteriorated, and that scenario is now materializing. Although no specific volume decline figures were released, Lloyd’s List’s characterization of traffic “grinding to a halt” signals a near-total absence of insured, compliant vessels—a situation that will force charter rates and war-risk insurance premiums to stratospheric levels, as shipping companies avoid the area altogether or insist on massive compensation for the risk.

For financial markets, the lapse of the ceasefire removes the last vestige of stability. The interim deal, which provided for toll-free passage through the strait for only 60 days pending a final agreement on Iran’s disputed nuclear program, was always a temporary patch. Its collapse now means that the “stranglehold” on the strait—a phrase used by Western leaders—has returned with greater force. Commodity traders are bracing for potential crude oil price spikes, with Brent likely to test levels not seen since the initial outbreak of hostilities earlier in the year. Equities in energy-heavy sectors could see sharp moves, while currencies of oil-importing nations may weaken. Safe-haven assets, including gold and US Treasuries, are poised to benefit from the uncertainty.