Oil and Gas

On March 11, the Thai cargo ship Mayuree Naree was struck by two projectiles while crossing the Strait of Hormuz, one of the world’s most important waterways located between Iran and Oman. A fire broke out in the engine room, and while 20 sailors were rescued, three remained trapped inside the stricken vessel. Their remains were found weeks later when a specialised rescue team boarded the vessel, which had run aground on the shores of Iran’s Qeshm island.

At about the same time, a “shadow fleet” of tankers continued to navigate the very same waters safely. Operating with fake flags, disabled signals and unspecified destinations, this covert armada survived because it operates outside the traditional rules of maritime trade.

Iran threatened to block “enemy” ships passing through the Strait of Hormuz – a crucial chokepoint for a fifth of the world’s oil – in the wake of the United States-Israeli war launched on February 28. Soon, navigation through the strait was disrupted amid fears of attacks.

Following a temporary ceasefire on April 8, the United States imposed a full naval blockade on Iranian ports on April 13. Theoretically, traffic through the strait should have come to a complete halt.

However, tracking data reveals a remarkably different reality.

An exclusive Al Jazeera open-source investigation tracked 202 voyages made by 185 vessels through the strait between March 1 and April 15, navigating both under fire and across blockade lines.

The numbers behind the shadows

To understand how the strait operated under extreme pressure, Al Jazeera’s Digital Investigative Unit monitored the waterway daily, cross-referencing vessel International Maritime Organization (IMO) numbers with international sanction lists from the US Office of Foreign Assets Control (OFAC), the European Union, the United Kingdom and the United Nations. An IMO number is a unique seven-digit figure assigned to commercial ships.

Of the tracked voyages, 77 (38.5 percent) were directly or indirectly linked to Iran. Notably, 61 of the ships transiting the strait were explicitly listed on international sanctions lists.

The investigation divided the conflict into three distinct phases to map the fleet’s behaviour:

• Phase 1: Open War (March 1 – April 6): 126 ships crossed the strait, peaking at 30 vessels on March 1. Among these, 46 were linked to Iran.
• Phase 2: The Truce (April 7 – 13): 49 ships crossed during this fragile pause. More than 40 percent of these vessels were tied to Iran, including the US-sanctioned, Iranian-flagged Roshak, which successfully exited the Gulf.
• Phase 3: The US Blockade (April 13 – 15): Despite the explicit naval blockade, 25 ships crossed the strait.

Breaking the blockade

When the US blockade took effect, the shadow fleet adapted immediately.

The Iranian cargo ship “13448” successfully broke the blockade. Because it is a smaller vessel operating in coastal waters, it lacks an official IMO number, allowing it to evade traditional sanction-monitoring tools. The vessel departed Iran’s Al Hamriya port and reached Karachi, Pakistan.

Similarly, the Panama-flagged Manali broke the blockade, crossing on April 14 and penetrating the cordon again on April 17 en route to Mumbai, India.

The investigation uncovered widespread manipulation of Automatic Identification System (AIS) trackers. Vessels such as the US-sanctioned Flora, Genoa and Skywave deliberately disabled or jammed their signals to hide their identities and destinations.

Fake flags and shell companies

To obscure ultimate ownership, the shadow fleet heavily relies on a complex web of “false flags” and shell companies. The investigation identified 16 ships operating under fake flags, including registries from landlocked nations like Botswana and San Marino, as well as others from Madagascar, Guinea, Haiti and Comoros.

The operational network managing these ships spans the globe. Operating firms were primarily based in Iran (15.7 percent), China (13 percent), Greece (more than 11 percent) and the United Arab Emirates (9.7 percent). Notably, the operators of nearly 19 percent of the observed vessels remain unknown.

The toll of a parallel system

Despite the intense military pressure, energy carriers dominated the traffic, with 68 ships (36.2 percent) transporting crude oil, petroleum products and gas. Ten of these tankers were directly linked to Iran. Non-oil trade also persisted, with 57 bulk and general cargo ships crossing during the open war phase, 41 of which were tied to Tehran.

Before the war, at least 100 ships crossed the Strait of Hormuz daily. Today, a staggering 20,000 sailors are trapped on 2,000 ships across the Gulf – a crisis the International Maritime Organization described as unprecedented since World War II.

A shadow Iranian fleet, meanwhile, has been navigating seamlessly as part of a parallel maritime system born from 47 years of US sanctions on Tehran. Washington slapped sanctions on Tehran following the 1979 Islamic revolution that toppled the pro-Washington ruler Shah Mohammad Reza Pahlavi. The two countries have had no diplomatic ties since 1980.

The US naval blockade of Iranian ports and the Strait of Hormuz, in place since April 13, has raised concerns that Iran could run out of crude oil storage capacity and be forced to curb production.

Bloomberg reported analysis on Tuesday from the data and analytics company Kpler suggesting Iran could run out of crude storage in 12 to 22 days if the blockade persists.

Last week, United States Treasury Secretary Scott Bessent claimed that storage capacity at Kharg Island, where most of Iran’s oil is exported, would be full “in a matter of days”.

So how quickly could Iran run out of oil storage, and why does it matter?

What is happening in the Strait of Hormuz?

The Strait of Hormuz is a narrow channel that connects the Gulf to the open ocean. It spans the territorial waters of Iran on its northern side and Oman on its southern side. It is not in international waters.

During peacetime, 20 percent of the world’s oil and liquefied natural gas (LNG) supplies are shipped through the corridor.

Two days after the US and Israel launched their first air strikes in their war on Iran on February 28, Ebrahim Jabari, a senior adviser to the commander in chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), announced that the strait was “closed”. If any vessels tried to pass through, he said, the IRGC and the navy would “set those ships ablaze”.

As the war has dragged on and negotiations have failed to achieve a settlement, Iran has at times in the past two months allowed some “friendly” ships and those that pay tolls to pass. It is currently refusing to allow any foreign-flagged ships, including those previously deemed friendly, to pass until the US lifts its own naval blockade.

Iranian First Vice President Mohammad Reza Aref said on April 19 that the “security of the Strait of Hormuz is not free”.

“One cannot restrict Iran’s oil exports while expecting free security for others,” he wrote in a post on X.

“The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” he added. “Stability in global fuel prices depends on a guaranteed and lasting end to the economic and military pressure against Iran and its allies.”

Since the US naval blockade on the strait began, the US has opened fire on and taken control of an Iranian-flagged tanker near the Strait of Hormuz while also redirecting vessels on the high seas transporting cargo to or from Iran. Iran’s armed forces have denounced these actions as “an illegal act” that “amounts to piracy”.

The US naval blockade of the strait means that Iran might have to store the oil it produces.

Iran is the third largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq and exports 90 percent of its crude oil via Kharg Island in the Gulf for shipping through the Strait of Hormuz.

What has the US claimed?

The US is eager to curb Iran’s oil revenues, which have risen since Tehran closed the Strait of Hormuz to other shipping. This is the primary motive behind Washington’s naval blockade of Iranian ports.

Iran exported 1.84 million barrels per day (bpd) of crude oil in March and shipped 1.71 million bpd in April, compared with an average of 1.68 million bpd in 2025, according to Kpler.

However, the US naval blockade since mid-April now means that most of its exports are having to be stored instead.

Bessent wrote in an X post on April 22: “In a matter of days, Kharg Island storage will be full and the fragile Iranian oil wells will be shut in.”

“Constraining Iran’s maritime trade directly targets the regime’s primary revenue lifelines.”

How much oil can Iran store?

Iran’s domestic refineries have a production capacity of 2.6 million bpd, according to the energy consultancy Facts Global Energy.

Satellite data show the amount of oil Iran has in storage has risen sharply since the US blockade began, and in the days after the US tightened it, stocks were rising so fast that it appeared Iran had been barely able to export any oil at all.

From April 13 to April 21, data showed that stocks rose by more than 6 million barrels, according to the Columbia Center on Global Energy Policy (CGEP). From April 17 to April 21, the stock increased very rapidly, growing by 1.7 bpd.

As of April 20, the storage tanks at Kharg were about 74 percent full after the island alone had taken on about 3 million extra barrels of oil, the CGEP reported.

Generally, oil companies avoid filling their storage beyond 80 percent capacity to balance safety, emissions control and flexibility.

However, Iran and other oil producing countries have exceeded this limit before, for instance, during the COVID-19 pandemic. In April 2020, Kharg island’s stocks reached close to 90 percent capacity, an all-time high.

Iran also has some crude oil storage capacity in the form of “floating tanks”, or parked ships. About 127 million barrels can be stored in this way, Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera in an interview on April 14.

Will Iran need to cut oil production?

Muyu Xu, a senior crude oil analyst at Kpler, told Al Jazeera that the blockade could eventually force Iran to cut production.

“However, given there is still available storage capacity onshore (roughly covering 20 days of Iran’s current production), we expect any production reduction to be gradual over the coming week with a higher likelihood of acceleration into May,” she said.

Analysis by CGEP nonresident fellow Antoine Halff echoed this. Halff wrote in an article published by CGEP on Tuesday that it may be some time before the US blockade causes Iran to shut off its production “in a big way”.

However, Halff added, Iran may still choose to halt production “fairly aggressively” but this “would be more by choice than by necessity”.

He explained: “Doing so would have the advantage of providing Iran with relatively ample spare storage capacity after the shutdown and would allow for a smoother restart of operations once conditions permit, and the constraint is relaxed, thus minimising adverse impacts from the blockade on longer-term supply.”

Why does this matter?

Halting oil production risks damaging underground reservoirs by reducing reservoir pressure, allowing water or gas to encroach into producing layers and changing patterns of oil flow. This can make some oil harder or more expensive to recover later, experts said.

Restarting the process of oil production can also be slow and costly, involving repairs of corroded equipment or unclogging pipelines.

Halting production would also cause Iran’s export revenues to drop. However, analysts said that for a few months, Iran can continue to earn revenue from oil that is already in transit at sea.

Kenneth Katzman, former Iran analyst at the Congressional Research Service in Washington, DC, said Iran is not exporting new oil during the US blockade of Iranian ports but Tehran has 160 million to 170 million barrels of oil on ships around the world currently.

The UAE’s decision to quit OPEC to prioritise its ‘national interests’ deals a blow to the oil group already grappling with the challenge of shipping Gulf exports through the Strait of Hormuz. Here’s what we know about why it’s withdrawing and the impact it might have.

Brent crude rises more than 2 percent after Washington and Tehran fail to hold second round of talks in Pakistan.

Oil prices have climbed higher amid stalled peace talks between the United States and Iran.

Brent crude rose more than 2 percent on Sunday after hopes for a second round of ceasefire negotiations between Washington and Tehran unravelled over the weekend.

After easing slightly, Brent, the primary benchmark for global prices, stood at $106.99 as of 1:30 GMT.

Stock markets in Asia shrugged off the impasse to open higher on Monday, with Japan’s benchmark Nikkei 225 and South Korea’s KOSPI gaining 0.9 percent and 1.5 percent, respectively, in morning trading.

US President Donald Trump on Saturday cancelled a planned trip to Pakistan by his envoys, Steve Witkoff and Jared Kushner, after Iranian Minister of Foreign Affairs Abbas Araghchi departed Islamabad before any direct engagement could take place between the sides.

Araghchi arrived in Russia’s Saint Petersburg on Monday for talks with Russian President Vladimir Putin and other officials as Tehran seeks a way out of the diplomatic impasse.

Araghchi’s trip, which follows a whistle-stop visit to Oman on Sunday, comes as uncertainty hangs over the fragile ceasefire between Washington and Tehran.

Trump announced an extension to their two-week truce last week, without specifying a deadline for reaching a deal to end the war.

As US and Iranian negotiators struggle to break the deadlock, Tehran’s threats against commercial shipping in the Strait of Hormuz have reduced traffic to a trickle, paralysing a large portion of the world’s supply of oil and natural gas.

On Saturday, 19 commercial vessels transited the strait, which normally carries about one-fifth of global oil and natural gas supplies, according to maritime intelligence platform Windward.

Before the US and Israel launched their war on Iran in late February, the waterway saw an average of 129 daily transits, according to the United Nations Trade and Development.

United States President Donald Trump has claimed Iran is “collapsing financially” and said the country is losing millions of dollars a day due to Washington’s naval blockade of Iranian ports.

In a post on his Truth Social platform on Tuesday night, Trump wrote: “Iran is collapsing financially! They want the Strait of Hormuz opened immediately – Starving for cash! Losing 500 Million Dollars a day. Military and Police complaining that they are not getting paid. SOS!!!”

The US blockade of Iranian ports began at 14:00 GMT on April 13. Since then, the US has fired on and seized an Iranian-flagged tanker near the Strait of Hormuz, and redirected ships in the open seas carrying cargo to or from Iran. Iran’s armed forces have called this “an illegal act” that “amounts to piracy”.

In response to the US naval blockade, Iran has closed the Strait of Hormuz to all foreign shipping and has captured several foreign-flagged ships. Previously, it had allowed some ships deemed “friendly” to Iran to pass.

On April 19, Iran’s First Vice President Mohammad Reza Aref said the “security of the Strait of Hormuz is not free”.

“One cannot restrict Iran’s oil exports while expecting free security for others,” he wrote in a post on X.

“The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” he added. “Stability in global fuel prices depends on a guaranteed and lasting end to the economic and military pressure against Iran and its allies.”

In a statement on social media on Thursday, Iran’s parliamentary speaker and lead negotiator in the ceasefire talks, Mohammad Bagher Ghalibaf, said a full ceasefire could only work if the US naval blockade is lifted.

Analysts say the blockade is hurting Iran but believe the country has the economic and political will to sustain it.

How long can Iran survive the naval blockade?

Here’s what we know:

How is the naval blockade hurting Iran?

Iran exports oil, gas and other goods including petrochemicals, plastics and agricultural products by sea. Analysts say the US naval blockade of its ports, including in the Strait of Hormuz, could therefore affect this trade.

Soon after the start of the US-Israel war on Iran on February 28, authorities in Tehran implemented the effective closure of the Strait of Hormuz, the only waterway out of the Gulf, through which 20 percent of the world’s oil and liquefied natural gas (LNG) supplies were shipped from Gulf producers in peacetime.

The near-shutdown of the vital chokepoint sent global oil and gas prices soaring, and since then, Iran has controlled the strait. However, it has continued to export its own energy products through the waterway.

Iran’s oil exports through the Strait of Hormuz account for about 80 percent of its total oil exports. According to Kpler, a trade intelligence firm, Iran exported 1.84 million barrels per day (bpd) of crude oil in March and has shipped 1.71 million bpd so far in April, compared with an average of 1.68 million bpd in 2025.

From March 15 to April 14, it exported 55.22 million barrels of oil. The price per barrel of Iranian oil – across its three major variants, known as Iranian light, Iranian heavy and Forozan blend – has not fallen below $90 per barrel over the past month. On many days, the price has surpassed $100 a barrel.

Even at the conservative estimate of $90 a barrel, Iran has earned at least $4.97bn over the past month from its ongoing oil exports.

By contrast, in early February before the war started, Iran was earning about $115m a day from its crude oil exports, or $3.45bn in a month.

Simply put, Iran has earned 40 percent more from oil exports in the past month than it did before the war.

Stopping this is a key motivation behind the US naval blockade of Iranian ports.

In an interview with Al Jazeera on April 14, Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera that the previous six weeks had been a boon for Iran in terms of oil revenues, but with the US blockade, that will change.

“Iran has some buffer in the form of crude oil reserves in floating tanks – basically parked tankers – which was estimated at about 127 million barrels in February. But that doesn’t mean that the blockade wouldn’t hurt Iran,” he said.

On Friday, Schneider told Al Jazeera that Iran, however, seems to be “playing the longer game” and has anticipated and prepared for this sort of conflict to some degree.

“The naval blockade has added economic strain, as several civilian ships have been captured in international waters. But it remains unclear how tight the blockade is, how many ships manage to pass given the considerable amount of floating Iranian oil, and how long Trump can maintain the blockade,” he said.

Can the US keep the blockade going for long?

Schneider noted that Trump will face a legislative challenge by May 1, when the 60 days he can maintain a foreign offensive without congressional approval come to an end.

Dire conditions have been reported on the ships that are upholding the blockade, he said, and it remains to be seen how China will react to the continuing seizure of ships that carry any of its cargo.

“China has already said it sees the blockade of Chinese trade with Iran as unacceptable. Further, the closure of Hormuz by Iran in retaliation is hurting, if not the US itself that much, American allies in the region and globally, raising the pressure on Trump,” he said.

“If we can glean anything from the behaviour of the two sides, it is Iran that is signalling patience and Trump showing impatience,” he added.

Adam Ereli, a former US ambassador to Bahrain, told Al Jazeera’s This is America programme that while the US blockade of Iranian ports and seizure of vessels transporting Iranian oil “makes sense” as a policy, it may not work as intended due to domestic political considerations in the US.

“The Iranians have prepared for this, for this eventuality. They have their own plans. They’ve got alternative means of storing their oil or selling their oil,” Ereli told Al Jazeera.

“Even if they ran out of oil, they have ways to survive a very tough blockade and sanctions regime that, frankly, I think will outlast Trump’s patience and the patience of the American people,” he said.

“Remember, this isn’t just about moving soldiers and ships and planes around on a map. There’s politics involved here in the United States,” he added.

“Trump is nothing if not attuned to the political winds. And for that reason, I think that you’ve got this Iran strategy on the one hand that runs up against an electoral strategy on another hand, and therefore, the question is, which one is going to give?”

Can Iran store the oil the US is blockading in the meantime?

Iran’s domestic refineries have a capacity of 2.6 million bpd, according to consultancy FGE Energy. Its oil and gas production facilities are concentrated in southwestern provinces: Khuzestan for oil and Bushehr for gas and condensate from the South Pars gasfield.

Iran is also the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and exports 90 percent of its crude oil via Kharg Island for shipping through the Strait of Hormuz.

The US naval blockade has begun affecting the country’s storage capacity, according to TankerTrackers, the maritime intelligence agency. The blockade means Iran has to store more oil, and space could become tight.

TankerTrackers said that on Kharg Island, to prepare for the possibility of running out of oil storage space, Iran has brought an old tanker named NASHA (9079107) out of retirement.

“She’s a 30yo [year old] VLCC [Very Large Crude Carrier] that’s been anchored empty for the past few years; currently spending 4 days on a trip that should take 1.5-2 days,” TankerTrackers said in a post on X, suggesting that the tanker is being used to store oil. It is unclear if the ship has a heading or course.

Can Iran continue to earn revenues from oil?

Yes, analysts say that for a few months, Iran can continue to earn revenue from oil which is already in transit at sea.

Kenneth Katzman, former Iran analyst at the Congressional Research Service in Washington, DC, said Iran is not exporting new oil amid the US blockade of Iranian ports, but Tehran has between 160 million and 170 million barrels of oil “afloat” on ships around the world currently.

Those supplies, which transited the Strait of Hormuz before the US blockade was imposed, are on board hundreds of tankers and “waiting to be delivered”, Katzman told Al Jazeera.

Katzman said he had been informed by an Iranian professor that, based on those supplies, Tehran could have revenue flows that can last until August despite the US naval blockade.

“Which is a long time. Does President Trump have until August? Probably not,” he said.

“He’s probably going to have to look at kinetic escalation if he wants to bring this to the conclusion that he wants, or he’s going to have to accept less than the deal he ideally wants,” he said.

Iranian ships will still have to avoid US naval ships on the open ocean, as the US Navy has also recently intercepted ships carrying Iranian cargoes.

On Wednesday this week, for example, the US military intercepted at least three Iranian-flagged tankers in ‌Asian waters, Reuters reported, and was said to be redirecting them away from their positions near India, Malaysia and Sri Lanka.

How else can Iran earn revenue?

Besides oil revenue, Iran is also currently receiving revenue from a “toll booth” system that the country imposed on the Strait of Hormuz in March.

On Thursday, Iran’s deputy parliament speaker Hamidreza Haji-Babaei said Tehran’s central bank had received the first revenues from tolls imposed since the start of the war, according to the semiofficial Tasnim news agency. It is unclear how much that toll revenue is.

Iranian politician Alaeddin Boroujerdi told the United Kingdom-based, Farsi-language satellite TV channel Iran International in March that the country has been charging some vessels as much as $2m each to pass through the strait.

According to Lloyd’s List, the shipping news outlet, at least two vessels that have transited the strait so far have paid fees in yuan, China’s currency. Lloyd’s List reported that one “transit was brokered by a Chinese maritime services company acting as an intermediary, which also handled the payment to Iranian authorities”. It is, however, not clear how much the vessels paid.

How resilient is Iran’s leadership?

In recent days, while pressuring Iran to negotiate a ceasefire deal, US President Donald Trump has claimed that Iranians are “having a very hard time figuring out who their leader is”, alleging that there is “crazy” infighting between “moderates” and “hardliners” in Tehran.

But the country’s officials have insisted that Iran’s government is united.

Mohammad Reza Aref, Iran’s first vice president, said on Thursday: “Our political diversity is our democracy, yet in times of peril, we are a ‘Single Hand’ under one flag. To protect our soil and dignity, we transcend all labels. We are one soul, one nation.”

Foreign Minister Abbas Araghchi also dismissed allegations that the Iranian military may be at odds with the political leadership.

“The failure of Israel’s terrorist killings is reflected in how Iran’s state institutions continue to act with unity, purpose, and discipline,” he wrote on X, referring to the assassinations of Iranian political and military figures Israel has carried out in recent weeks.

“The battlefield and diplomacy are fully coordinated fronts in the same war. Iranians are all united, more than ever before.”

One of the strongest messages of unity came from Iran’s President Masoud Pezeshkian.

“In Iran, there are no radicals or moderates,” he said on X.

“We are all Iranians and revolutionaries. With ironclad unity of nation and state and obedience to the Supreme Leader, we will make the aggressor regret.”

How strong is Iran militarily?

Iran has demonstrated considerable military resilience in the face of weeks of US-Israeli strikes through its use of asymmetric warfare.

This includes the use of guerrilla tactics, cyberattacks, arming and supporting proxy armed groups and other indirect tools.

During its war with the US and Israel, Iran has targeted energy infrastructure in Israel and across the Gulf, threatened to target banking institutions and targeted US data centres of technology companies such as Amazon in the United Arab Emirates and Bahrain.

Iran has also blocked the Strait of Hormuz and reportedly placed mines in the strait to disrupt shipping, sending global oil prices soaring.

Since the US began its naval blockade of Iranian ports in mid-April, Iranian officials have repeatedly promised that their country will defend itself and respond to any US attack.

Earlier this week, after the US military said it had seized an Iranian vessel and ordered dozens of others to turn around, Iran also retaliated by capturing foreign commercial vessels around the Hormuz Strait, which it said violated naval regulations.

Ereli, the former US ambassador, told Al Jazeera that Iran and the IRGC have “revolutionary fervour”, which means they can “survive”. “They can tolerate pain for a lot longer than I think most American decision makers and planners calculate,” Ereli said.

Ereli said it was unknown how long Tehran could last under “siege conditions” imposed by the US, but probably a lot longer than the US anticipates.

“I think they can go a lot longer, especially than most people imagine, and especially when it comes to kneeling to the Americans,” Ereli said.

“There’s a level of pride and survival. They’re at war with us, and for them it’s a war of necessity. They’ve got to survive,” he added.

Jump in prices comes as Donald Trump says vessels will need permission of US Navy to transit key waterway.

Oil prices have jumped on heightened tensions between the United States and Iran in the Strait of Hormuz following Washington and Tehran’s tit-for-tat captures of commercial vessels.

Brent crude, the international benchmark, topped $106 per barrel early on Friday morning as Washington and Tehran stepped up their confrontation over the key maritime route for transporting the world’s energy.

Brent stood at $106.80 as of 01:00 GMT, up nearly 5 percent from its closing price on Wednesday, when it surpassed $100 per barrel for the first time in two weeks.

US stocks fell overnight, with the benchmark S&P 500 index dipping 0.41 percent and the tech-heavy Nasdaq Composite dropping 0.89 percent.

Shipping in the Strait of Hormuz, which normally carries about one-fifth of the world’s supply of oil and natural gas, remains at a standstill as Iran continues to demand the right to decide which vessels may pass and the US blocks Iran’s maritime trade.

US President Donald Trump said in a Truth Social post on Thursday that he had ordered the US Navy to destroy any Iranian boats laying mines in the strait, shortly after the Pentagon announced that it had seized a tanker carrying sanctioned Iranian oil for the second time in less than a week.

Trump also appeared to expand the scope of the US naval blockade beyond Iranian ports, writing on Truth Social that no ship “can enter or leave” the strait without the approval of the US Navy.

“It is ‘Sealed up Tight,’ until such time as Iran is able to make a DEAL!!!” Trump said.

Trump’s threats came a day after Iran’s Islamic Revolutionary Guard Corps announced the capture of two foreign cargo ships in the waterway.

The IRGC said it had seized the Panamanian-flagged MSC Francesca and Greek-owned Epaminondas after the vessels had endangered maritime security “by operating without the necessary permits and tampering with navigation systems”.

The Greek Maritime Affairs and Insular Policy Ministry has denied that the Epaminondas was captured and said the vessel remains under the control of its captain.

Only nine commercial vessels transited the strait on Wednesday, compared with seven on Tuesday and 15 on Monday, according to maritime intelligence platform Windward.

Before the US and Israel launched their war against Iran on February 28, the waterway saw an average of 129 transits each day, according to United Nations Trade and Development.

EXPLAINER

President Trump said the US would extend the ceasefire until Iran presents a proposal and talks are concluded, but a naval blockade of its ports continues.

President Donald Trump said the United States is extending the ceasefire until Tehran submits its latest proposal with conditions for ending the war, and until negotiations conclude, keeping diplomacy open while maintaining pressure on Iran.

However, Trump said the US naval blockade on Iran would remain. Iran has insisted that the blockade represents a violation of the ceasefire, and has said it will not negotiate under the “shadow of threats” or while the blockade remains in place, underscoring the fragile and uncertain path to talks.

Meanwhile, violence continues across the region, with Israeli settlers killing two people, including a child, in the occupied West Bank, and Israeli strikes in southern Lebanon wounding civilians and damaging homes despite a 10-day ceasefire.

In Iran

• The Islamic Revolutionary Guard Corps (IRGC) said oil production across the Middle East could be targeted if attacks were launched from Gulf neighbours’ territory.
• The US is continuing its naval blockade of Iranian ports despite the truce, a move Iran says undermines the ceasefire.
• An adviser to Iran’s parliamentary speaker said the ceasefire extension could be a “ploy to buy time” for potential military escalation.
• Foreign Minister Abbas Araghchi described the US naval blockade as an “act of war” and a violation of the truce.

War diplomacy

• Tehran open to diplomacy: Reporting from Tehran, Al Jazeera’s Almigdad Alruhaid said there was no official response to Trump’s ceasefire extension, but officials signalled openness to talks. The US blockade of the Strait of Hormuz is seen as a violation of the truce, with commanders saying forces are fully prepared to respond to any escalation.
• US sanctions widened: The US imposed new sanctions linked to Iran’s weapons programmes, while the European Union is moving to expand its own measures.
• Talks planned in Washington, DC: The US is set to host ambassador-level negotiations between Israel and Lebanon, as Lebanese Prime Minister Nawaf Salam pushes for a full Israeli withdrawal from the country’s territory as Beirut’s main objective.

In the Gulf

• Trump said a potential currency swap with the United Arab Emirates is “under consideration”, adding Washington would support the Gulf ally if needed, after reports the idea was raised with US officials amid concerns the war could strain the UAE’s economy.

In the US

• The US president said he was extending a ceasefire with Iran to give more time for negotiations, but would maintain the naval blockade of Iranian ports.
• Reporting from the White House, Al Jazeera’s Alan Fisher said Trump has shifted between conciliatory and hardline rhetoric, linking the blockade of the Strait of Hormuz to forcing Iran to negotiate, while warning of military action if negotiations fail.
• The mixed messaging has unsettled markets, but some analysts argue the strategy shows calculated pressure and a willingness to wait for Iran’s response.

In Israel

• Israeli Prime Minister Benjamin Netanyahu said the country has been strengthened by its campaigns against Iran and its allies, claiming joint efforts with the US weakened Tehran’s capabilities and boosted Israel’s regional position, opening the door to new alliances.

In Lebanon

• Prime Minister Salam said on Tuesday that Lebanon needed $587m to address the conflict’s ongoing humanitarian fallout amid a fragile ceasefire between Israel and Hezbollah.
• Tensions remain high as Israel and Hezbollah accuse each other of breaching the truce. Israel said rockets were fired at its troops in southern Lebanon and that it responded with strikes, while Hezbollah said its attacks were retaliation for Israeli shelling and ongoing strikes on Lebanese areas.

Oil and global economy

• Shipping through the Strait of Hormuz remains severely limited, raising concerns over global oil flows.

Morbi, India – For seven years, Pradeep Kumar would walk into the ceramics factory in western India at 9am, load raw materials – clay, quartz and sand – into the kiln, and spend the day around the heat and dust of the furnaces.

He handled the clay at different stages, sometimes feeding it into machines, sometimes moving semi-processed pieces towards firing. The work was repetitive and demanding, with no protective gear, such as gloves and masks, against the high temperatures.

“It would be very challenging in the summers since the heat would be at its peak,” he told Al Jazeera.

But on March 15, he lost his job – not because of anything he or the company behind his factory had done, but because the United States and Israel attacked Iran, triggering another war in the Middle East and a global fuel crisis.

Barely two weeks after the war began, the ceramics company where he worked shut down due to a shortage of propane and natural gas. The company, in Morbi in Gujarat state – like all of its peers in the ceramics industry – depends on these critical ingredients.

Morbi is the centre of India’s ceramics industry that employs more than 400,000 people. More than half of these workers, like Kumar, are migrants from poorer Indian states like Uttar Pradesh and Bihar.

Five days after Kumar lost his job, the 29-year-old took his wife and their three children back to their home in Uttar Pradesh’s Hardoi district.

“I am here until every other migrant worker who came back home with us goes back,” he told Al Jazeera.

“We don’t want to suffer like dogs, like we did during the COVID-19 pandemic,” he added, referring to the 2020 and 2021 exodus of migrant workers from India’s more industrialised western states to the poorer east, with millions of starving families, including children, walking on foot for days and sometimes weeks to reach their homes amid a coronavirus lockdown.

About 450 of 600 companies shut

With more than 600 companies, Morbi produces about 80 percent of India’s ceramics in the form of tiles, toilets, bathtubs and wash basins. But at least 450 of those companies have been forced to shut down as a standoff on the Strait of Hormuz, a lifeline for India’s gas imports, continues.

Meanwhile, the war continues, with the US on Sunday capturing an Iranian cargo vessel, even as Washington says it is willing to hold another round of talks with Tehran in Pakistan to reach a deal. Tehran has refused to commit to peace talks after its ship was seized.

The developments came as a fragile ceasefire agreed by Iran and the US after a month of fighting expires on Wednesday. But a re-escalation in hostilities has seen Iran shutting down Hormuz for traffic, disrupting global fuel supplies and raising oil prices.

“All manufacturing units in Morbi rely on propane and natural gas to fire kilns at high temperatures. While propane is supplied by private companies, natural gas is provided by the state to those with connections. Around 60 percent of manufacturers use propane because it is comparatively cheaper,” Siddharth Bopaliya, a 27-year-old third-generation manufacturer and trader in Morbi, told Al Jazeera.

Manoj Arvadiya, president of the Morbi Ceramic Manufacturers Association, said they had shut down the units till April 15, hoping that the Middle East crisis would be resolved by then.

“But even today, only around 100 units have opened, and most have still not begun the manufacturing process. For at least another 15 days, it is likely to remain the same,” he told Al Jazeera.

Arvadiya said the closure has impacted 200,000 workers, with more than a quarter of them forced to go back to their homes in other states.

India’s ceramic industry is valued at $6bn.

“About 25 percent of Morbi’s ceramics are exported to countries in the Middle East, Africa and Europe, with a net worth of $1.5bn. But exports are now delayed and, in some cases, completely halted, especially to Middle Eastern countries, due to the production slowdown over the past month,” Arvadiya told Al Jazeera.

Factories that rely on propane remain shut in Morbi. Though natural gas is mostly available, many units have not made the switch yet, as new connections are being priced at 93 rupees a kilo, while existing users receive it at about 70 rupees.

Khushiram Sapariya, a manufacturer of washbasins who relies on propane, said he will wait this month before deciding on reopening his factory.

“Because then I have to call hundreds of staff who have gone to their homes, and I want to be sure before taking their responsibility,” he said.

Returned home with ‘Morbi disease’

Among the workers who left Morbi last month is 27-year-old Ankur Singh.

“The shutdown of my company did not send me back alone, but with a Morbi disease – silicosis. I would often have fever and cough but kept ignoring it, until I came back to my hometown near Patna in Bihar and found after a check-up that it was silicosis,” he told Al Jazeera.

Silicosis is an incurable lung disease caused by inhalation of silica dust found in rock, sand, quartz and other building materials. One of the oldest occupational diseases in the world, it kills thousands of people every year.

Gujarat-based labour rights activist Chirag Chavda says the disease is “widespread in Morbi because workers are routinely exposed to fine silica dust generated during ceramic production”.

“Even those not directly involved in moulding or kiln work often inhale the particles due to poor ventilation and prolonged exposure across factory spaces,” he told Al Jazeera.

Chavda said most ceramic companies do not follow the government regulations regarding the safety of workers.

Harish Zala, 40, had worked in different ceramic companies in Morbi for two decades before he got silicosis two years ago. He said he received no help from his employer, who allegedly abused and threatened his father when he visited the company after the diagnosis.

“Every year, at least one labourer dies of silicosis in each company, while several get detected for silicosis,” Zala told Al Jazeera. “Some like me get lucky and survive, but have no choice but to quit the job immediately.”

Zala said many companies do not provide the workers with written proof of employment, such as appointment letters, salary slips, or identity cards. “This is done so that if a worker later demands labour rights or legal entitlements, they have no concrete evidence to prove that they were employed by the company.”

Chirag added that such workers are also denied social security under various Indian laws regarding salaries or pension funds, since doing so would establish proof of employment.

“As a result, even after working for years, workers are deprived of their labour rights due to a lack of evidence. This leaves employers with little to no legal accountability,” he said.

In Morbi, there are also migrants like Sushma Devi, 56, who did not go back to her home in West Bengal because the tile company her son works at has promised to continue giving them shelter and food as it waits for manufacturing to resume.

“I am here with a few more people because we did not want to spend money on travelling. Here, at least our ration is sorted,” she said as she walked with a bundle of dry twigs, wood and discarded plywood for the cooking.

“We step out to collect these every day to be able to cook our two-time meal,” said Devi. “I hope the kilns and manufacturing resume soon, but I also hope they don’t stop giving us rice and potatoes even if the kilns don’t start running anytime soon.”

Devi’s husband, Debendar, and their son Ankit live in a one-room set given to them by their company. The family has access to a common toilet for 10 families on one floor.

Kumar, meanwhile, is running out of his meagre savings and fears he could fall into a debt trap.

“Initially, we ate from whatever we had saved. But the house needed repair and we had to borrow 20,000 rupees ($214) from a relative, which we have no idea when or how we will repay,” he said, looking at the reworked roof of his brick house in Hardoi.

Brent crude rises more than 7 percent as Washington and Tehran offer conflicting accounts on ceasefire negotiations.

Oil prices have risen sharply following attacks on commercial vessels in the Strait of Hormuz and conflicting messages about the prospect of renewed negotiations between the United States and Iran.

Brent crude futures, the primary benchmark for global prices, jumped more than 7 percent in Asia on Monday as the outlook for peace between Washington and Tehran darkened.

Prices eased somewhat later in the morning, with the benchmark at $94.69 a barrel as of 02:05 GMT, up from just under $90.40 on Friday.

The latest price surge came after US President Donald Trump said US forces seized an Iranian-flagged cargo vessel that had attempted to evade the US blockade of Iran’s ports.

Trump’s announcement followed reports by the United Kingdom Maritime Trade Operations (UKMTO) Centre over the weekend that two vessels came under attack while transiting the strait.

Iranian gunboats fired on a tanker, while an “unknown projectile” struck a container ship, according to the UKMTO.

After declaring the strait “completely open” on Friday, Tehran reversed course less than 24 hours later, citing the ongoing US blockade.

Earlier on Sunday, Trump said that a US delegation would travel to Pakistan on Monday to hold a second round of ceasefire talks with Iranian officials.

Iranian state news outlet IRNA later reported that Tehran would not participate in the talks, citing the US blockade and Washington’s “excessive demands” and “unrealistic expectations”.

A two-week ceasefire between Washington and Tehran is set to expire on Wednesday if the sides cannot agree on an extension.

An initial round of talks held in Islamabad earlier this month broke down without any agreement between the sides.

Iran’s effective closure of the strait, which usually carries about one-fifth of global oil and natural gas supplies, has driven a surge in fuel prices worldwide, forcing governments to tap emergency supplies and roll out energy-saving measures.

Nineteen vessels crossed the strait on Saturday, up from 10 the previous day, but far below the historical average of 138 daily transits, according to the UKMTO.

Asia’s main stock markets opened higher on Monday despite the dimming prospects of de-escalation.

Japan’s Nikkei 225 rose more than 1 percent in morning trading, while South Korea’s KOSPI gained about 1.3 percent.

Hong Kong’s Hang Seng Index rose about 0.5 percent, while the SSE Composite Index in Shanghai gained more than 0.4 percent.

The world is reckoning with the biggest oil supply disruption in history, one that has sent energy prices soaring, rattled stock markets and exposed the deep vulnerabilities of economies still hooked on fossil fuels. While millions face higher fuel and energy bills, top oil and gas companies are reportedly profiting about $30m per hour since the war began.

This week on UpFront, Redi Tlhabi speaks with renowned economist Mariana Mazzucato about what a genuine green industrial strategy looks like, why the World Bank has fallen short, and how her concept of the “common good economy” offers a new compass for governments navigating crises.

Reports of Iranian gunboats opening fire on a tanker in strait, after Tehran said it is closing the waterway until the US lifts the blockade of its ports.

Iran says it has closed the Strait of Hormuz again, calling the decision a response to a continued blockade of its ports by the United States.

The Iranian military on Saturday said control of the strategic waterway, through which 20 percent of the global oil flows, has “returned to its previous state”, with reports saying Iranian gunboats fired at a merchant vessel as it attempted to ‌cross.

The closure of the strait came hours after it was reopened, with more than a dozen commercial ships passing through the waterway, after a US-mediated 10-day ceasefire deal was reached between Israel and Lebanon.

The Islamic Revolutionary Guard Corps (IRGC) on Saturday said in a statement, cited by the Iranian media, that the ongoing US blockade of Iranian ports represented “acts of piracy and maritime theft”, adding that the control over Hormuz is “under the strict management and control of the armed forces”.

“Until the US restores full freedom of navigation for vessels travelling from Iran to their destinations and back, the status of the Strait of Hormuz will remain tightly controlled and in its previous condition,” it said.

By 10:30 GMT on Saturday, no fewer than eight oil and gas tankers had crossed the strait, but at least as many ships appeared to have turned back, having begun to exit the Gulf, the AFP news agency reported.

The toing and froing over the strait cast doubt on US President Donald Trump’s optimism the day before, that a peace deal to end the US-Israel war on Iran was “very close”.

Trump had celebrated the reopening of the strait on Friday, but warned the US attacks would resume until Iran agreed to a deal, which included its nuclear programme.

“Maybe I won’t extend it,” Trump told reporters on board Air Force One about the temporary ceasefire agreement in place. “So you’ll have a blockade, and unfortunately we’ll have to start dropping bombs again.”

Asked whether a potential deal could be made in this short timeframe, Trump said: “I think it’s going to happen.”

But Iran says no date has been agreed for another round of peace talks, accusing the US of “betraying” diplomacy in all negotiations.

The conflicting and changing reports about the strait and how much freedom ships have to transit through it have deterred many vessels from crossing, according to John-Paul Rodrigue, a maritime shipping specialist at Texas A&M University.

“Ships have been attempting transit since the announcement, but it looks like many of them are heading back because the situation is unclear,” Rodrigue told Al Jazeera. “There is contradictory information being issued by all parties.”

Reporting from Tehran, Al Jazeera’s Tohid Asadi said “uncertainty is the name of the game” as far as the Strait of Hormuz is concerned.

“Iran is looking for a comprehensive end to the war across the region, security assurances, sanctions relief, the unfreezing of frozen assets, regional relations – and on top of all of that – the nuclear dossier and Iran’s stockpile of highly enriched uranium,” he said.

“But right now, uncertainty is the name of the game. The fragile situation makes it hard to talk about the possibility of successful negotiations down the road.”

Brent crude falls more than 9 percent after Iran said it will reopen the strategic waterway, only to shut it down again over US blockade of its ports.

Oil prices have plummeted to their lowest point in weeks after Iran said the Strait of Hormuz was open for passage during a ceasefire in Lebanon, and United States President Donald Trump said he expected to ⁠reach a deal to end the war soon.

Brent crude, the international benchmark, fell more than 9 percent to $90.38 a barrel on Friday, taking it below $91 for the first time since March 10.

The plunge came after Iranian Foreign Minister Abbas Araghchi said the strait was “completely open” and would remain so for the duration of the 10-day ceasefire between Israel and Lebanon, which took effect on Friday.

Hailing Tehran’s announcement, Trump declared the waterway “ready for business and full passage,” but said the US Navy’s blockade of Iranian ports would remain in “full force” until the sides reached a peace deal.

On Saturday, however, Iran rowed back on its decision to reopen the Strait of Hormuz, warning that it would continue to block transit through the key waterway as long as the US blockade of Iranian ports remained in effect.

The announcement came after Trump said the blockade “will remain in full force” until Tehran reaches a deal with the US, including on its nuclear programme.

Roughly one-fifth of the world’s oil passes through Hormuz and further limits would squeeze already constrained supply, driving prices higher once again.

Amid the escalation, Pakistani officials say they are trying for more talks between the US and Iran ahead of the April 22 ceasefire deadline.

Meanwhile, ship tracking data displayed by MarineTraffic earlier on Saturday showed a significant uptick in vessels crossing the strait, which is located between Iran, the United Arab Emirates and Oman.

“It’s busy out there, the busiest I’ve seen it since the Strait of Hormuz was effectively closed at the beginning of the war,” Michelle Wiese Bockmann, an analyst at maritime intelligence firm Windward, said in a post on X.

“Last night there were few ships taking the risk but overnight there seems to have been a change.”

While Iran allowed a limited number of vetted ships to transit the waterway since the start of the war, traffic has remained at a trickle compared with pre-conflict levels.

The near-total closure of the strait has triggered one of the worst energy shocks in history, driving up fuel prices and prompting governments to roll out emergency measures.

Oil prices have swung wildly since the US and Israel launched strikes on Iran on February 28, hitting a post-conflict peak of $119 a barrel on March 19.

Shipping companies said several things had to be clarified, including the presence of mines, Iranian conditions, practical implementations.

Shipping companies have cautiously welcomed Iran’s announcement that the Strait of Hormuz is open but said they would require clarifications, including about the risk of mines, before vessels move through the entry point to the Gulf.

Iran’s Foreign Minister Abbas Araghchi said on Friday that the Strait of Hormuz was open to all commercial vessels during a 10-day Lebanon ceasefire accord, prompting a fall in oil and other commodity prices while stock markets rose.

All commercial ships, including United States vessels, can sail through the strait, although their plans need to be coordinated with Iran’s Islamic Revolutionary Guard Corps, a senior Iranian official told the Reuters news agency.

Transit would be restricted to lanes which Iran deemed safe, adding that military vessels were still prohibited, the official said.

“We are currently verifying the recent announcement related to the reopening of the Strait of Hormuz, in terms of its compliance with freedom of navigation for all merchant vessels and secure passage,” said Arsenio Dominguez, secretary-general of the United Nations shipping agency, the International Maritime Organization.

The Norwegian Shipowners’ Association said several things had to be clarified before any ships could transit the strait, including the presence of mines, Iranian conditions and practical implementation.

“If this represents a step towards an opening, it is a welcome development,” said Knut Arild Hareide, CEO of the association which represents 130 companies with some 1,500 vessels.

Shipping association BIMCO cautioned members on returning to the strait.

“The status of mine threats… is unclear and BIMCO believes shipping companies should consider avoiding the area,” said Jakob Larsen, BIMCO’s chief safety and security officer.

The threat posed by mines in parts of the strait is not fully understood, and avoidance of the area by ships should be considered, a US Navy advisory on Friday, seen by Reuters, also said.

German shipping group Hapag-Lloyd on Friday said it was working for its ships to sail through the strait “as soon as possible”, but added that several questions remained.

“Our crisis committee is in session and will try to resolve all open items with the relevant parties within the next 24-36 hours,” it added.

Its Danish peer Maersk said it was closely monitoring the security situation and would act based on its risk assessment.

France’s CMA CGM and Norwegian oil tanker group Frontline declined to comment.

A recent route imposed by Tehran through its territorial waters near Larak Island would present navigational challenges even if vessels were not required to pay a toll, and would raise questions regarding compliance and insurance, said Matt Wright, lead freight analyst at data intelligence firm Kpler.

US President Donald Trump on Friday said Iran had agreed to never close the strait again, and that it was removing sea mines from it.

One of the world’s most important maritime chokepoints, disruption in the strait has forced shipping companies to suspend sailings, reroute cargo and rely on costly workarounds to keep goods moving in and out of the Gulf.

Hungary’s newly elected leader, Peter Magyar, stormed to power last weekend after campaigning to, among other things, take a step back from Russia.

Instead, Magyar has promised voters he will steer Hungary back towards the European Union, following the 16-year rule of far-right Prime Minister Viktor Orban, who went to great lengths to deepen ties with Russia.

Under Orban, Hungary opposed most of the European Union’s stances against Russia and  blocked sanctions and obstructed military aid for Ukraine.

Above all, he and his Fidesz party entrenched Hungary’s reliance on Russian oil.

Now, following a massive electoral turnout and a landslide victory, Magyar – once a devotee of Orban and now leader of the centre-right Tisza party – has promised to end Russian oil imports by 2035. But how realistic a goal is that? And can he achieve it?

How much does Hungary depend on Russia for energy?

Hungary has been central to keeping Russian oil and gas flowing into the EU, even as Europe and the US banned some imports and imposed sanctions on anyone paying more than $60 a barrel for Russian oil.

Following Russia’s invasion of Ukraine, the EU banned seaborne imports of Russian oil but kept land flows legal. That allowed Hungary to continue importing most of its crude by pipeline via Ukraine.

The EU first announced plans to phase out Russian energy imports in May 2022, shortly after Russia’s invasion of Ukraine. In December 2025, a binding agreement was made for member nations to completely phase out Russian oil and gas imports by late 2027. But, instead of diversifying from Moscow, Hungary increased its dependency.

According to a 2026 report by the Center for the Study of Democracy (CSD), Hungary had expanded its reliance on Russian crude from 61 percent in 2021 to 93 percent by 2025.

Much of the crude oil Hungary imports from Russia comes via the Druzhba pipeline. It is one of the key pipelines that ensures the continued flow of Russian crude to both Hungary and Slovakia. At 5,500 km (3,420 miles) long, it begins in Almetyevsk in western Russia and runs into Belarus. It splits at Mozyr, with one branch going to Poland and Germany and the southern branch goes through Ukraine into Slovakia, Hungary and Czechia.

In January, the section of the pipeline running through Ukraine suffered significant damage. Ukraine blamed a Russian airstrike – Moscow denies that.

Hungary and Slovakia have complained that Ukraine has been deliberately slow to repair the damage. As a result, in March, Orban vetoed a 90 billion euro ($106bn) loan from the EU to Ukraine until the pipeline reopens.

On Tuesday this week, Ukraine’s President Volodymyr Zelenskyy said oil will flow again through the conduit by the end of April as he expects the new Hungarian leadership to lift its veto on the loan by then.

As for gas, Hungary remains one of the most dependent EU member states on Russian natural gas, accounting for roughly three-quarters of its annual imports, the CSD report shows.

Since the start of Russia’s invasion, Hungary has imported an estimated 15.6 billion euros ($18.4bn) worth of Russian gas. Long-term contracts with Russia’s state-owned Gazprom, the continued reliance on TurkStream – a natural gas pipeline running from Russia to Turkiye – and “the weak use of alternative interconnectors have locked the country into Russia’s reconfigured gas export system”, the CSD report states.

Nuclear energy dependency is yet another issue. Hungary granted Rosatom, the Russian state nuclear energy corporation, the construction contract for the expansion of its Paks atomic plant, 100km (62 miles) southwest of Budapest on the Danube River. Russia, in turn, provided Hungary with a state loan to finance most of the development of new reactors. The European Commission approved the plan in 2017 and construction started in February.

Now, Magyar says he intends to reassess the project’s financing. But the Paks plant provides 40 to 50 percent of all electricity generated in Hungary. The expansion plans will increase that to between 60 and 70 percent, which would cut reliance on imported energy, but keep Hungary tied to Russia. 

According to a 2025 joint research paper by the Center for the Study of Democracy and the Center for Research on Energy and Clean Air, Hungary could potentially diversify its energy supply by importing non-Russian oil via alternative sources such as the Adria pipeline. It transports crude from the Adriatic Sea to refineries in Croatia, Serbia, Hungary and Slovakia. Their refiners, which are controlled by Hungarian oil and gas company MOL, are capable of processing non-Russian crude, the research paper said.

Russian oil has been coming in at a discounted rate as a result of Western sanctions, so any diversification will likely be more expensive.

Can Hungary wean itself off its dependence on Russian oil?

It won’t be easy, and Magyar knows it. “The geographical position of neither Russia nor Hungary will change. Our energy exposure will also be here for a while,” he said before last weekend’s election. And in an interview with the Financial Times, Magyar insisted that Russian imports should remain an option. “This does not mean that by ending dependence on someone you no longer continue to buy from them,” he said.

Magyar will seek to strike a balance between respecting current contracts with Moscow to ensure Hungary’s energy security, while establishing political distance, said Pawel Zerka, a senior policy fellow at the European Council on Foreign Relations.

“I would expect this government not to be pro-Russia in the sense of going to Moscow and keeping ties with the Russian government, but they don’t have easy options to replace Russian fuel with something else, especially considering the international situation with the Middle East,” Zerka said, referring to the closure of the Strait of Hormuz in the Gulf which has blocked the shipping of 20 percent of the world’s oil and LNG supplies.

Zerka added that the newly elected leader will not have political room to be particularly cordial with Russian President Vladimir Putin, considering the disapproval of Russia by his electoral base. A recent poll by the European Council on Foreign Relations shows that a majority of Tisza’s voters see Russia as an adversary or rival to compete with.

“It will be interesting to see how he combines this with energy needs,” Zerka said.

How does the EU view Hungary’s energy ties to Russia?

The strong energy ties between Russia and Hungary have long caused friction with the EU. Following Moscow’s invasion of Ukraine in 2022, the European bloc has worked to cut imports of Russian oil and gas. Budapest has done the opposite.

In January, the EU passed legislation to completely phase out Russian gas and LNG imports by late 2027.

Orban’s government had called for all restrictions on Russian oil to be lifted as a result of the global energy crisis triggered by the war in the Middle East. While Trump has made some concessions on Russian oil already loaded on tankers at sea – causing several heading for China to head to India instead – EU leaders have maintained they will hold firm on sanctions.

In the lead-up to last weekend’s election, Magyar’s manifesto called the dependence on Russian energy a “systemic risk” and he would wean Hungary off its reliance by 2035. But whether he can do that in time to beat the EU’s 2027 deadline is likely to provoke discussion in Brussels.

The International Monetary Fund has downgraded its global growth forecast for 2026 from 3.3 to 3.1 percent, citing the impact of the United States-Israeli war on Iran and the shutdown of the Strait of Hormuz on the world economy.

The war has damaged energy infrastructure across the Gulf, while critical exports like oil, gas, chemicals and fertiliser remain largely stranded by Iran’s shutdown of the strait and the subsequent US naval blockade of Iranian ports.

In the worst-case scenario of a prolonged war, the IMF said global growth could fall to 2.5 percent in 2026, with low-income and developing economies hit the hardest by soaring commodity and energy prices. The global shipping and logistics industry is facing a separate crisis.

But every economic crisis also has beneficiaries: despite the dire macroeconomic outlook, some corners of the global economy are thriving on the uncertainty.

Here’s a look at five industries that are doing well either despite – or because of – the darkening economic outlook.

Wall Street investment banks

Global investors have been on a rollercoaster since the start of US President Donald Trump’s second term last year. The president’s erratic decision-making, where he often issues an ultimatum one day and then changes it the next, has led traders to coin the term “TACO trade”, where TACO stands for “Trump Always Chickens Out”.

The recent volatility has made some investors anxious, but it’s been a boon to investment banks, which make millions in commissions and revenue from the surging volume of trade, according to Sean Dunlap, a director of equity research at Morningstar Research Services.

“Clients want to reposition, so they trade frequently,” he told Al Jazeera. “Spreads tend to increase, which increases the profitability for trade intermediaries like banks.”

First-quarter results for 2026 – released this week – showed that Morgan Stanley reported a profit of $5.57bn, up 29 percent year on year, while Goldman Sachs reported a profit of $5.63bn, up 19 percent year on year.

JP Morgan Chase also reported major gains, with first-quarter earnings of $16.49bn, up 13 percent year on year. The banks all cited high levels of trading, deal-making, and “robust client engagement” as the reasons behind surging profits.

The boomtime for banks could reverse course, however, if volatility persists for too long, Dunlap warned, because investors may become increasingly cautious and less willing to borrow money to make trades.

Prediction markets

As mainstream Wall Street banks reap profits, the crypto-based prediction platform Polymarket has been earning upwards of $1m a day since the start of the month by letting users make peer-to-peer bets on everything from sports tournaments to elections.

Polymarket has been doing well since the start of the war, but it revised its fee structure on March 30 to cash in even more on its popularity.

Rival platforms like Kalshi, Novig and Robinhood also follow the same business model, but Polymarket has been the standout winner of 2026 because it controversially allows users to bet on the outcome of conflicts like the Iran war.

Polymarket revised its fee structure on March 30 to cash in on its popularity. The change has already netted the platform more than $21m in fees since April 1, up from $11.6m for all of March and $6.23m for all of February, according to DefiLlama, a website that provides data analysis for decentralised finance platforms.

If the current trend continues, Polymarket could make $342m in fees this year alone, according to DefiLlama’s analysis.

Anonymous users have also made millions correctly predicting the dates of major events like the US-Iran ceasefire, but the outcomes for rank-and-file users are typically less impressive.

Researchers found that the top 1 percent of Polymarket users captured 84 percent of all trading gains, according to a new report released this month analysing 70 million trades from 2022 to 2025. The returns are so high that US federal regulators have pledged to crack down on insider trading in prediction markets following suspiciously well-timed bets on Iran war outcomes.

Aerospace and defence

Unsurprisingly, the aerospace and defence industries are booming this year due to major conflicts in Ukraine, Iran, Sudan, Gaza and Lebanon and a surge in global defence spending.

About half of the world’s countries have increased their military budgets over the past five years, according to an April report from the IMF, which means they are also buying everything from drones to missiles — more than ever before. Demand is growing particularly fast in Europe, where NATO countries have committed to raising defence spending to 5 percent of gross domestic product (GDP) by 2035.

The defence industry has, in turn, seen major gains on the stock market. The MSCI World Aerospace and Defence Index – which tracks aerospace and defence stocks across 23 global markets – reported net returns of 32 percent year on year at the end of March.

The defence index outpaced the MSCI World Index, which tracks 1,300 large and mid-cap companies across the same 23 markets. The index, which gives a broader overview of global stock markets, reported net returns of 18.9 percent over the same period.

Artificial intelligence

Last year, the United Nations Trade and Development (UNCTAD) office predicted that the AI industry would grow from $189bn in 2023 to $4.8 trillion by 2033, and the Iran war does not seem to have dented the outlook.

“Despite the shocks from the Iran war, we’re still seeing resilience in a lot of sectors like artificial intelligence and renewable energy,” said Nick Marro, lead analyst for global trade at the Economist Intelligence Unit.

One metric for the AI boom has been the high volume of semiconductor chips still being exported out of East Asia, he said. At the top of the chart is chipmaking powerhouse Taiwan, which reported record-breaking merchandise exports of $80.2bn in March, up 61.8 percent year on year, according to EIU analysis.

The surge was led by exports to the US, which grew by 124 percent year on year, the EIU said.

Taiwan Semiconductor Manufacturing Company, the world’s top chipmaker better known by its acronym “TSMC,” on Thursday posted a net income of 572.8 billion New Taiwan Dollars (NTD) ($18.1bn) for the first three months of 2026 – up 58 percent year on year in NTD.

Another metric, initial public offerings or “IPOs,” also shows that the industry is confident for the moment, with industry leaders Anthropic and OpenAI both planning to go public this year.

Renewable energy

The Iran war has highlighted the need to transition from fossil fuels not only for environmental reasons, but also for reasons of energy security. The war marks the third major energy shock this decade, following the COVID-19 pandemic and the 2022 Russian invasion of Ukraine.

The Iran war has “boosted” renewable energy “given the urgency to switch away from fossil fuels and diversify towards renewable sources,” Marro of the EIU said.

Even before the Iran war began, the International Energy Agency reported that global governments were already taking active measures to invest in renewable energy for geopolitical reasons.

According to an IEA report released this month, “150 countries have active policies to advance renewable and nuclear deployment, 130 have energy efficiency and electrification policies, and 32 have policies to incentivise supply chain resilience and diversification across critical minerals and clean energy technologies.”

The Iran war has triggered another flurry of policymaking in Asia, which typically buys 80 to 90 percent of the oil and gas that transits through the Strait of Hormuz. Since the shutdown, the region has been struggling to find alternative sources of energy, forcing governments to deploy emergency measures like fuel rationing and price caps.

South Korea, Thailand, India, Cambodia, Indonesia, Vietnam and the Philippines have all announced a variety of measures from tax breaks for at-home solar panels to commissioning new renewable energy projects – and even restarting nuclear reactors.

The surge in policymaking has been good for the renewable industry. The S&P Global Clean Energy Transition Index, which tracks 100 companies that produce solar, wind, hydro, biomass and other renewable energy across emerging and developed markets, is up 70.92 percent year on year.

The US has spent decades trying to squeeze Iran economically.
Six weeks into the Middle East conflict, Tehran is still standing.
US and Israeli attacks on infrastructure, industry and trade have damaged Iran’s sanctioned economy even further.

But oil revenues have kept flowing, giving the regime a financial cushion.

The Strait of Hormuz is now at the centre of this economic battle; whoever controls it controls the pressure.

At the negotiating table, sanctions relief, billions in frozen assets and war reparations are all at stake.

Meanwhile, millions of Iranians are bearing the brunt of inflation, shortages and a collapsing currency.

A major fire at a key refinery in Australia refinery has disrupted fuel production, raising fears of shortages as supplies are already strained by the Iran war.

Watch the moment a Democratic congresswoman tells the US Energy Secretary he is ‘living in a different world’ after his response to whether he’d adequately warned the White House that a war on Iran would have global consequences.