Daily vessel transit through the Strait of Hormuz has fallen to nearly zero as of Tuesday, May 5, 2026, compared to around 135 crossings per day before the outbreak of the nine-week conflict between the United States and Iran.
Shipping Collapse and Expanding Iranian Control Zone
Hundreds of ships have gathered near Dubai, close to a newly defined Iranian control zone that Tehran says extends south along the UAE coastline to Umm Al Quwain. ADNOC confirmed that its supertanker Barakah came under drone attack in the Strait, while South Korea reported that one of its vessels was targeted for the first time during the conflict.
Crew members across the region reported hearing radio broadcasts from Iran's Islamic Revolutionary Guard Corps, warning ships about newly enforced maritime boundaries.
Ceasefire Breakdown and Escalating Attacks
A nominal ceasefire between the United States and Iran continues to deteriorate, with both sides exchanging strikes even as Washington claims it has reopened the waterway and deployed two destroyers to the Persian Gulf.
Attacks on the UAE port of Fujairah highlighted the expansion of Iran's operational reach and reinforced what analysts describe as an effective blockade. The prolonged disruption has already shaken global freight benchmarks, rendered long-standing pricing indices unreliable, and triggered at least one legal dispute between a major trading house and an index publisher.
Global Market Impact and Long-Term Disruption
Anup Singh, global head of shipping research at Oil Brokerage Ltd, said he does not expect a rapid resumption of two-way traffic through the strait. With hundreds of oil and chemical tankers stranded in the Persian Gulf and no meaningful de-escalation in sight, the closure has evolved into a structural market breakdown rather than a temporary risk factor.
