Strait of Hormuz Crisis: Tanker Traffic Diverts to Cape of Good Hope, Oil Prices Remain Elevated

Tanker traffic around the Cape of Good Hope has surged to its highest levels since early 2025 as the Middle East conflict continues to disrupt global energy shipping routes. The Strait of Hormuz is technically open but operationally constrained, functioning as a de facto Iranian-controlled bottleneck rather than a free transit route. Crude oil prices surged above $100 per barrel in mid-March 2026 due to geopolitical tensions and have fluctuated since. Disruptions to energy shipments through the Strait of Hormuz have wide-ranging impacts on global energy prices and inflationary pressures. The UK has deployed a Royal Navy destroyer toward the Strait of Hormuz as a precautionary measure. Energy markets, particularly in Europe, have been supported by high oil prices, although elevated energy costs create challenges for businesses and consumers globally.