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Strait of Hormuz Disruption Raises Risks for Oil and Fuel Shipping
The Strait of Hormuz remains the most important immediate risk for international oil and petroleum product markets.
According to reports published on 1 August 2026, tanker traffic through the strait has been severely restricted, while vessels attempting to pass through the area face competing routing instructions, military escorts and the risk of attack.
The disruption has already affected crude oil, diesel, gasoline, petrochemicals, aluminium and fertilizer supply chains. Before the conflict, approximately one-fifth of global oil supply moved through the Strait of Hormuz.
Physical supply is under pressure
The effect of the closure is not limited to crude oil benchmarks. Restricted tanker movement affects:
- availability of export cargoes;
- vessel positioning;
- war-risk insurance;
- freight rates;
- voyage duration;
- loading and discharge schedules;
- regional stocks of diesel and other fuels.
US crude prices traded near USD 85 per barrel at the end of July after rising by approximately 25% since the conflict began. Oil prices had climbed substantially higher during the quarter, while gasoline, diesel and petrochemical prices increased even more sharply.
Freight and insurance may outweigh benchmark movements
A change in Brent or WTI does not fully explain the delivered cost of a physical cargo.
For CIF and CFR transactions, the final price also depends on the availability of suitable tonnage, route security, insurance conditions and the ability of the vessel to complete the nominated voyage.
A cargo priced competitively on an FOB basis may become significantly more expensive when the route requires a war-risk premium or diversion.
What buyers should expect
In the present market, buyers should expect:
- shorter offer-validity periods;
- destination-specific freight calculations;
- confirmation of vessel and route availability;
- stricter corporate and compliance verification;
- cargo allocation only after contractual execution.
ALGHAF MARINE commercial quotations do not independently reserve product. Allocation begins after the SPA is electronically executed and the first contractual stage is funded through the Trading Portal.
Transactions are settled in USDT or USDC through a staged 2-of-3 multisignature digital-asset escrow structure, with release conditions defined in the SPA.
Source: The Wall Street Journal and The Guardian, 1 August 2026.