The Iran conflict is causing chaos in global shipping, with tankers stranded, damaged, and insurance companies cancelling war risk coverage for vessels in the Middle East Gulf. The Strait of Hormuz, a critical waterway carrying around 20% of global oil and large quantities of gas, has come to a near halt. About 150 ships, including oil and LNG tankers, are stranded, and at least four tankers have been damaged, with two people killed.

The disruption has sent oil and European natural gas prices soaring, with Brent crude futures up as much as 13%. The conflict has triggered multiple oil and gas shutdowns in the Middle East, and shipping costs are expected to rise further. Around 10% of the world’s container ships are caught in the backups, and cargo may soon pile up at European and Asian ports.

Iran’s Revolutionary Guards have warned they’ll fire on any ship attempting to transit the Strait of Hormuz, exacerbating the situation. Major shipping companies, including Ocean Network Express, have stopped booking cargo to the Middle East.