Shipping operations in the Persian Gulf are facing mounting pressure as electronic interference and escalating geopolitical tensions disrupt navigation and force shipowners to restrict movements to daylight hours only. The resulting congestion has led to a backlog of nearly 1,000 vessels, market sources confirmed on 23 June.
The situation is compounded by widespread Global Positioning System (GPS) jamming and compromised communication links, with navigation systems regularly affected. Operators have responded by narrowing the transit window from a full 24-hour schedule to a restricted 16–18 hour period, intensifying delays along one of the world’s busiest maritime corridors.
“There are not only concerns that the ships may get attacked, but the immediate problem is how to get recent loadings out of the Persian Gulf,” a representative from a tanker-owning firm said. The company recently dispatched two laden vessels from the region, while another is currently being loaded.
The congestion affects key oil and gas shipping lanes, particularly the Strait of Hormuz. Roughly 20 million barrels per day (b/d) of seaborne crude, condensate and refined products move through the strait, alongside approximately 11 billion cubic feet per day (Bcf/d) of liquefied natural gas (LNG). Any disruption in this artery has direct implications for global energy supply chains.
Market participants report that GPS jamming incidents are increasing in frequency and severity. “The lack of connectivity is becoming very frequent. Many ships are not contactable,” a shipping executive stated. Without reliable GPS signals, vessels are unable to detect nearby traffic accurately, significantly heightening the risk of maritime accidents.
This risk was brought into sharp focus by a recent incident involving a Unipec-chartered Very Large Crude Carrier (VLCC), Front Eagle, which collided with a Suezmax vessel, Adalynn, on 17 June off the coast of Khor Fakkan, near the Strait of Hormuz. Both ships caught fire. The cause of the collision has not been officially confirmed, but maritime authorities in the region have subsequently issued warnings about intensified electronic interference.
Vessel operators note that essential 24-hour communication between shore-based teams and crew is being hindered. This lack of constant contact, combined with the risk of GPS denial and the presence of sea mines, is raising concerns over broader maritime safety even if the Strait itself remains open.
In operational terms, these developments have led to a notable spike in freight costs. Platts assessments reported that VLCC rates on the Persian Gulf–China route increased to Worldscale 80 (w80) on 20 June, from w48 a week prior. Similarly, clean tanker rates to North Asia have reached their highest levels so far this year.
Brokers indicate that the shipping market is now pricing in both the risk of delays and the potential for a wider conflict. Should the Strait of Hormuz close, freight rates could drop sharply due to inactivity, with vessels left idle in the region. Conversely, as long as the waterway remains open, owners are likely to command elevated rates citing the danger of operating in a conflict-prone zone.
The economic importance of the Strait to regional actors, particularly Iran, remains significant. Despite US sanctions, Iran continues to export oil to destinations including China, making uninterrupted access through the Strait a matter of strategic interest.
Nevertheless, while headline freight figures have surged, sources have downplayed claims of soaring war risk premiums. According to tanker market participants, the current additional war risk cost for a seven-day voyage through the Persian Gulf for Long Range 1 (LR1) tankers remains within the $30,000–$40,000 range. “Figures being quoted higher than this are highly exaggerated,” a source said.
As the situation evolves, maritime stakeholders continue to monitor regional developments, particularly in light of the ongoing Iran-Israel tensions. With electronic warfare becoming an increasingly central component of regional hostilities, the vulnerability of commercial shipping to non-kinetic disruptions has emerged as a growing concern. The absence of reliable positioning data in narrow and heavily trafficked waters such as the Persian Gulf is now considered a significant operational hazard.
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