As of June 24, 2025, the Strait of Hormuz has not been physically closed or rendered impassable by Iran. Commercial shipping traffic continues to flow through the strait, albeit with extreme caution and significantly elevated insurance costs and freight rates.
Significant Disruptions
Escalating military operations in Iran, coupled with threats from Iranian lawmakers to close the Strait of Hormuz, are causing significant disruptions to commercial shipping, particularly impacting navigation systems.
The Wall Street Journal reported that several commercial ships were forced to turn around after their navigation systems were jammed, including two tankers vital for China’s energy supply. Since Sunday, half a dozen ships have diverted course on their way to the Strait of Hormuz, a critical waterway for global energy markets, according to shipping officials, analysts, and marine-tracking data.
Specifically, two Chinese-operated Very Large Crude Carriers (VLCCs) experienced navigation system jamming as they attempted to enter the Strait. The Coswisdom Lake, operated by China’s Cosco Shipping Energy Transportation, and the South Loyalty, owned by Sinokor Merchant Marine, both turned around while sailing south of the Iranian Port of Bandar Abbas over the weekend. Later, the Coswisdom Lake, along with two other vessels, executed another U-turn and are now heading back into Hormuz.
Navigational jamming presents a method to effectively “close” the Strait of Hormuz with potentially the least direct risk to the Iranian navy, assuming their vessels are not the source. However, this tactic carries its own challenges. It would likely be easier to trace the source of the jamming, potentially leading to targeted strikes by Israeli and American forces to destroy transmitters and their operators. While the U.S. Navy could still retaliate by targeting Iranian naval vessels, President Trump would likely prefer to avoid such actions unless necessary, as any resulting wreckage could further impede shipping in the crucial waterway.
China’s Displeasure and Strategic Importance
While Iran could theoretically scuttle its naval vessels in the Strait to create a more direct and long-term impediment to shipping, this would be a self-destructive act. Such a move would effectively “cut off its nose, eyes, and lips to spite its face” because Iran relies on the Strait of Hormuz just as much as anyone else for its economic survival. Iran’s primary reliable income stream is through oil sales, and the vast majority of these exports, particularly to China, must traverse this waterway. Furthermore, recent military operations, including alleged Israeli strikes, have reportedly destroyed most of Iran’s drone and missile production capacity. Any remaining capacity would likely be prioritized for internal Iranian operations rather than for sale to external actors like Russia, further diminishing Iran’s economic and strategic flexibility.
The disruptions in the Strait of Hormuz are causing significant displeasure in Beijing, as much of Iran’s energy exports are destined for China. As the world’s second-largest economy, China is structurally reliant on imported energy, with approximately 84% of all oil passing through Hormuz destined for Asia. In Q1 2025, China alone imported 5.4 million barrels of crude oil per day through Hormuz, making it the largest single buyer. China also purchases over 90% of Iran’s oil exports, amounting to 1.3 million barrels per day in April 2025.
In a clear signal of its concern, the China Shipowners’ Association (CSOA) has instructed its members to immediately begin submitting daily reports on their ship movements through the Gulf of Oman and the Strait of Hormuz. Beijing has also publicly called on the international community to maintain stability in the critical shipping lanes of the Persian Gulf and explicitly stated it is “in touch with Iran about the ongoing conflict.”
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Source: HotAir
