Cargo ship on fire in the Strait of Hormuz, the U.S. unable to escort convoys: traffic halted and insurance rates skyrocketing

The pressure in the Strait of Hormuz has escalated into a new, serious assault that risks permanently blocking global energy traffic. On March 11, a projectile of still unknown origin struck a cargo ship transiting the crucial waterway at the border with Iran.

The impact triggered a violent fire on board, forcing the entire crew to evacuate in an emergency. The alarm was raised by the United Kingdom Maritime Trade Operations (UKMTO), confirming an explosive escalation along one of the planet's most strategic routes.

This incident is not isolated, but rather the peak of a crisis that has turned the Gulf of Oman into a vast parking lot for oil tankers. On digital maps, a constellation of “stationary dots” appears: these are the merchant ships that have been swaying at anchor for days, awaiting instructions on how to proceed safely.

According to tracking data provided by Lloyd’s List, Windward, and Vortexa, between 250 and 300 units — including tankers and large container ships — are currently blocked, diverted, or on standby at the edges of the Strait. This has resulted in a vertical collapse, nearing “zero”, of crude carrier transits in a bottleneck that alone handles about 20% of the world's oil transported by sea. The backbone of global energy flows has effectively broken within 48-72 hours.

The climate of fear among crews and shipping companies is fueled by a spiral of direct threats, reports of mines, naval drones, and continuous interceptions. To worsen the situation, during peak tension hours, a senior official from the Revolutionary Guards broadcast an unequivocal message via radio, warning that passage through the Strait is “not allowed.” The maritime sector has interpreted this warning as an operational alert rather than mere propaganda. Shipowners now perceive the area as a potential “kill box”, making even a formal and legal closure unnecessary to halt transits.

The true detonator of total paralysis, however, is of an economic and insurance nature. As of March 5, 2026, the major players in P&I mutuals and the London market began to suspend or drastically limit coverage for "war risk" in the waters of the Persian Gulf. Premiums have skyrocketed: from pre-crisis levels of 0.25% of the hull value to record rates of up to 3% for each individual crossing. For a large oil tanker (VLCC) valued at $200-300 million, this translates to an additional cost ranging from $2 to $7.5 million.

Despite attempts by the U.S. government to offer public guarantees, commanders and operators remain extremely skeptical about the idea of venturing into a route infested with drones, missiles, and GPS interference without sustainable protections. In the face of an unprecedented crisis, the Western military response appears, for now, insufficient to ensure the continuity of trade.

While theoretically equipped with cutting-edge means — from Aegis destroyers to anti-submarine helicopters — the U.S. Navy is currently unable to provide extensive escort for all merchant vessels. The reasons: a severe shortage of immediately available units and a risk profile deemed excessive. Organizing a "protected corridor" active 24 hours a day would require very clear rules of engagement, effective multinational coordination, and a fleet of patrol boats and minesweepers that, at present, is not concentrated in sufficient numbers in the Persian Gulf. Some European navies are considering targeted contributions, but the reality is that there is currently no shield to protect merchant vessels.

As smoke rises from the cargo ship struck on March 11, testifying to the extreme fragility of this vital hub, the world watches with concern as a Strait has become the absolute epicenter of global risk. Without escort fleets, without affordable insurance policies, and with the constant shadow of missiles, the heart of energy trade has stopped beating.