Commercial ships in the Persian Gulf remain a focal point of the conflict between Israel and Iran, with Iran’s Supreme Leader Ayatollah Mojtaba Khamenei vowing to leverage the effective closure of the Strait of Hormuz against the U.S. And Israel, according to the Associated Press.
The price of oil soared to nearly $120 a barrel after Israel struck Iran’s energy infrastructure and Tehran announced the closure of the Strait of Hormuz, a critical waterway for energy shipments carrying approximately 20% of the world’s oil supply. While prices have since fallen to below $90 a barrel, they remain more than 20% higher than at the start of the conflict on February 28, according to Deutsche Welle.
The conflict has directly impacted Gulf states – Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, and Bahrain – after Iran launched strikes on energy facilities, airports, hotels, residential areas, and U.S. Military sites in the region. These actions have prompted accusations of “treacherous” behavior and threats of potential military retaliation, as reported by Deutsche Welle.
A complete halt to oil production and exports from the Gulf could significantly increase prices, as the region accounts for roughly one-third of the world’s seaborne crude oil, according to Inquirer.net.
The vulnerability of Asian nations is particularly acute, with nearly 90% of oil and gas passing through the Strait of Hormuz destined for the region, according to the BBC. Southeast Asia is especially exposed, with countries like Malaysia and Indonesia increasingly reliant on imports despite being oil producers themselves.
Refineries in Southeast Asia are specifically configured to process “heavy sour” or “medium sour” crude oil from the Middle East, making a switch to alternative suppliers, such as the United States, a complex and costly undertaking requiring significant investment to alter refinery specifications, the BBC reported.
The Middle East Council estimates that if the conflict lasts four to six weeks with intermittent closure of the Strait of Hormuz, sustained attacks on Gulf infrastructure, and prolonged aviation closures, oil prices could remain above $100-120 per barrel. Gulf energy exporters would be unable to get their goods to market, leading to further price increases.
As of March 11, 2026, a Thai cargo ship, the Mayuree Naree, was struck and set ablaze in the Strait of Hormuz, according to the Associated Press.
