The Strike

On February 28, the United States and Israel launched Operation Epic Fury, a joint strike campaign targeting Iranian nuclear facilities. Within 48 hours, Iran responded by effectively shutting down the Strait of Hormuz. The 21-mile chokepoint carries roughly 20% of the world's daily oil supply.

Shipping Freezes

By Monday March 3, Brent crude had surged past $80, up more than 10% from its pre-war level of $73. Maersk suspended all vessel crossings. Greece advised ships to avoid the Persian Gulf entirely. Hundreds of tankers loaded with oil and LNG dropped anchor, unable to move.

The Closure

On March 4, the closure became official. Shipping traffic through the strait fell to near zero. Gulf producers including Kuwait, Iraq, Saudi Arabia, and the UAE began shutting in production as onshore storage filled up. By the end of the week, collective output had fallen by an estimated 6.7 million barrels per day.

Emergency Response

The response was historic. The U.S. and allied nations announced the largest coordinated strategic petroleum reserve release ever, totaling 400 million barrels. Sanctions on some Russian and Iranian oil were temporarily lifted to provide emergency supply.

But the market understood this was a stopgap. As long as the strait remained closed, the structural deficit would only widen.

Market Impact

Equity markets reflected the shock. The S&P 500 began what would become a five-week losing streak. Energy stocks surged while technology and financials sold off sharply, producing the most extreme sector rotation since 2022. The word on every trading desk: stagflation.

What Comes Next

The IEA would later call it the largest supply disruption in the history of the global oil market. But during the week of March 7, the full scale of the crisis was only beginning to come into focus.