Lowy Institute

Strait of Hormuz crisis: Iran, shipping, and Australia's strategy

Apr 16, 2026
Jennifer Parker, a former Royal Australian Navy warfare officer with 20+ years' service and Middle East operational experience, explains how Iran's actions around the Strait of Hormuz disrupted shipping and global energy markets. She breaks down what a naval blockade actually means. She outlines steps to restore shipping confidence and points to gaps in Australia's surface fleet and maritime dependence.
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INSIGHT

Strait Of Hormuz Is A Unique Global Choke Point

  • The Strait of Hormuz is a true maritime choke point with no alternate route, making it uniquely critical to global trade.
  • About 20% of world oil and key inputs like fertilizer and plastic precursors transit the strait, so disruption has outsized global impact.
ANECDOTE

Iran's Repeated Attacks On Shipping

  • Iran has a long history of attacking and seizing ships, and recently struck ~29 vessels with UAVs, USVs and cruise missiles across the Gulf region.
  • Jennifer Parker drew on her 2020 Bahrain deployment with the International Maritime Security Construct to explain these patterns.
INSIGHT

Deterrence Often Beats Physical Closure

  • Shipowners largely stopped transiting because they judged it unsafe and faced war-risk insurance problems, not solely because the strait was physically closed.
  • Claims Iran laid mines — even unproven — amplify deterrence by creating uncertainty about clearance needs.
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