More than 160 oil tankers carrying around 160 million barrels of crude oil and petroleum products are currently stranded in the Persian Gulf, highlighting the growing grip Iran is exerting over one of the world’s most critical energy chokepoints. Data from Kpler indicates that while some vessels have begun to exit the Gulf following Iran’s selective permission process for friendly states, a large volume of maritime traffic remains unable to move through the Strait of Hormuz, where tensions have sharply escalated in recent months.
The stranded cargo represents oil worth an estimated $17 billion, based on Dubai crude prices hovering near $107 per barrel. In response to the disruption, the United States launched “Project Freedom” on May 4, deploying guided-missile destroyers, more than 100 aircraft, and 15,000 troops in an attempt to secure passage for civilian vessels. Despite the scale of the operation, only two ships managed to transit before the effort was paused, following a decision by US President Donald Trump to halt the initiative amid signals of potential diplomatic progress with Iran.
Meanwhile, maritime data suggests Iran is steadily tightening its operational control over the Strait of Hormuz. Daily transits remain limited, with only 19 vessels passing on Monday, split between inbound and outbound routes. Ships entering the Persian Gulf have largely been smaller, including India-flagged vessels arriving after recent diplomatic talks. Iranian authorities have also expanded the operational reach of the Revolutionary Guard around the strait and established new administrative structures declaring unauthorized passage illegal, signaling a formalization of control over maritime traffic.
Tehran is also moving to monetize its dominance over the waterway, reportedly introducing cryptocurrency-backed insurance mechanisms for ships and granting selective passage permissions to vessels from countries including China, Japan, and Pakistan. At the same time, the United States has imposed its own restrictions at the entrance to the Gulf of Oman, redirecting or intercepting dozens of vessels, further compounding congestion in the region.
The sustained blockade-like conditions are creating severe logistical strain, forcing oil producers in the Gulf to store excess crude in floating tankers as onshore capacity fills. Analysts warn that this pressure is already contributing to production cuts across OPEC members, with April output falling sharply compared to February levels. Kuwait has seen the steepest decline, while Saudi Arabia’s output drop, though proportionally smaller, represents the largest volume reduction in the group, underscoring how the crisis in the Strait of Hormuz is now reshaping global oil flows and production strategy.
