The Strait of Hormuz remains partially accessible as courageous vessel operators brave potential Iranian strikes to move cargo through the critical Persian Gulf passage, with some vessels identifying as Chinese to ensure safe passage.
Tanker operations have largely stalled following the outbreak of hostilities between the U.S.-Israel coalition and Iran, which has responded by launching drone and missile attacks against regional neighbors and international energy transport vessels.
With roughly 20% of global oil and liquefied natural gas transiting the strait, the sudden disruption has triggered a sharp rise in energy prices. Conversely, this volatility offers significant financial incentives for vessels willing to complete deliveries, as freight rates have reached historic peaks.
Reports indicate that at least 10 vessels have recently updated their transponder data to broadcast messages such as “Chinese Owner,” “All Chinese Crew,” or “Chinese Crew Onboard.”
For instance, the Financial Times noted that the vessel Iron Maiden briefly updated its identification to “China owner” while navigating the strait this past Wednesday.
Given that approximately half of China’s oil imports pass through the strait and 90% of Iran’s oil exports are destined for China—often routed through third parties to bypass sanctions—Tehran remains heavily dependent on these shipments and is cautious about the optics of hindering tankers bound for its primary ally.
Beyond Chinese identity markers, other vessels, including oil tankers and container ships, are adopting different strategies. The FT highlighted a case from last weekend where the fuel tanker Bogazici transited the strait while temporarily signaling its status as a “Muslim Vsl Turkish” vessel.
To incentivize shippers to resume Gulf operations and stabilize global energy markets, President Donald Trump has unveiled a $20 billion reinsurance initiative for maritime traffic, including oil tankers.
However, analysts suggest that the risk of Iranian projectile attacks outweighs insurance concerns. In response, President Trump has proposed U.S. Navy escorts for tankers traversing the strait if required.
Financial markets remain skeptical, noting that under normal conditions, between 60 and 90 tankers transit the Strait of Hormuz daily.
Prior to the conflict’s escalation last weekend, the U.S. Navy maintained two aircraft carriers and 16 surface combatants in the Middle East, representing its most significant regional deployment since the 2003 Iraq War.
While the Navy possesses 233 commissioned warships and 59 support vessels, the majority are currently in port for maintenance or training, with less than 20% of the fleet actively deployed. As of late February, only 49 U.S. naval vessels were engaged in active operations.
Furthermore, the U.S. and its regional allies have struggled to intercept Iran’s Shahed drones, which have successfully struck several key military installations.
“Protecting such a high volume of ships is a monumental logistical challenge,” Robin Brooks, a senior fellow at the Brookings Institution, stated on Friday. “Iran only needs to successfully deploy a few drones to destroy a single ship to escalate this from a serious incident to a major oil shock. Ultimately, I find U.S. promises of naval escorts lack credibility, given the sheer number of tankers requiring protection.”