By Weilun Soon
April 20, 2026 (Bloomberg) – Commercial traffic through the Strait of Hormuz has nearly come to a halt on Monday after a brief and confusing reopening over the weekend ended with the first US seizure of an Iranian vessel. This highlights the challenges in restoring activity in this crucial shipping lane.
For the last seven weeks during the war in the Persian Gulf, transit through this waterway has slowed significantly as Iran tightens its control in response to US and Israeli attacks. On Friday, it seemed the situation was improving, with both Iran and the US announcing a reopening, causing oil prices to drop and ships to rush towards the strait. However, the situation quickly deteriorated.
By Sunday, the US Navy seized an Iranian cargo ship near the Iranian port of Jask in the Gulf of Oman as it was heading toward Hormuz. This marked the first seizure during the US blockade, raising concerns for shipowners operating in the area and expanding the zones considered unsafe for transit. In reaction, benchmark oil prices surged, indicating that the ongoing supply crisis might be prolonged.
“Uncertainty will lead most shipowners to take a cautious 'wait and see' approach,” said Ivan Mathews, head of APAC analysis at Vortexa Ltd.
One oil products tanker currently making its way south of Larak Island is the Nova Crest, which is heading out of Hormuz towards the Gulf of Oman. This vessel has been sanctioned by the UK, EU, and Switzerland due to its involvement in the Russian oil trade, and it has indicated Khor Fakkan in the United Arab Emirates as its destination.
In the opposite direction, the Axon I, a liquefied petroleum gas carrier that is under US sanctions, is moving into the strait from Fujairah, with Sharjah in the UAE as its intended destination. Nearby is the medium-range oil tanker Starway, which is signaling Hamriyah in the UAE as its next stop.
Liquefied natural gas tankers also approached the strait after the perceived reopening, but many have turned back or are waiting for more clarity before proceeding.
A fragile US-Iran ceasefire is set to expire by the end of Tuesday. It remains uncertain if the truce will be extended or if discussions between US and Iranian officials in Islamabad will take place later this week.