The US military struck Larak Island on July 22, 2026, a small but strategically outsized piece of land sitting at the narrowest choke point of the Strait of Hormuz. Iranian media outlet Tasnim News reported the strike targeted positions linked to Islamic Revolutionary Guard Corps Navy assets.
The Strait of Hormuz handles somewhere between 20% and 25% of all seaborne oil traded globally. Markets noticed immediately, with crude oil prices climbing toward $95 per barrel as traders priced in the possibility that supply disruptions could get significantly worse before they get better.
How we got here
US and Israeli military operations began in February 2026, drawing an aggressive Iranian response. By March 2026, Iran declared the strait effectively closed, a move that sent shockwaves through global shipping markets and triggered a significant rerouting of maritime traffic.
The US reinstated a naval blockade in mid-July 2026, tightening pressure on Iranian shipping access and further disrupting commercial vessel movement through the region. The July 22 missile strike on Larak Island represents the 11th consecutive night of US airstrikes on Iranian positions.
