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Chokepoints & Conflict4 min read

The Strait of Hormuz Closure and What It Did to Trade Finance

Roughly a fifth of the world's traded oil and LNG moves through the Strait of Hormuz in normal conditions. Since 28 February 2026 it has not been normal conditions. For anyone financing, insuring or supplying a counterparty with Gulf exposure, this stopped being a freight-rate story and became a receivables story.

A chokepoint closure is not a freight event

When a strait becomes impassable, the freight market reprices within hours. That part is visible and widely reported. What follows is slower and far less visible.

Cargo that cannot move is cargo that cannot be delivered. Undelivered cargo means undischarged bills of lading, uninvoiced shipments and unpaid receivables sitting against counterparties whose own cash inflows have stopped for the same reason. Hundreds of vessels and thousands of mariners were effectively trapped inside the Gulf during the closure's first phase. Every one of those vessels sat against a chain of contracts that continued to accrue obligations while generating no revenue.

The three ways Hormuz exposure hits a credit book

Direct — the counterparty that cannot trade. A Gulf-based trader, bunker supplier or operator whose entire commercial model depends on Hormuz transit has a revenue problem, not a liquidity wobble. Payment stretching is the first symptom.

Indirect — the counterparty that cannot be paid. A European or Asian counterparty selling into the Gulf faces the same problem from the other end. Its receivable is intact on paper and uncollectable in practice.

Systemic — the chain reaction. When war risk cover is withdrawn from a corridor, transit becomes commercially impossible even for parties willing to accept the physical risk. Insurance withdrawal closes a lane more completely than any blockade, and it does it to everyone at once.

The precision problem

The instinct after a chokepoint closure is to reprice the whole book. It is also usually the wrong move.

Plenty of counterparties in a maritime portfolio have no Hormuz exposure at all. Some have indirect exposure through a single charter. Some are genuinely trapped. Treating all three the same way means either over-pricing the safe exposures and losing them to a competitor, or under-pricing the trapped ones and taking a loss.

Separating the three requires knowing where the vessels tied to each counterparty actually are, and where they have been. That is an operational data question, and it is answerable in real time.

What to watch when the headlines settle

Chokepoint crises resolve unevenly. The Strait reopened in June and closed again in July. Each cycle leaves counterparties in different positions depending on where their tonnage was when conditions shifted.

The durable signal through all of it is payment timing. A counterparty that absorbed the closure without stress pays as it always did. One that did not starts paying later, in small increments, months before anything formal appears. That drift is measurable, and it is the earliest reliable indicator available.

What CERTY does about this

CERTY distinguishes counterparties genuinely transiting Hormuz from those on adjacent, unaffected routes — precision that matters when an entire portfolio is being repriced overnight. Behavioural scoring then tracks payment-timing drift at the counterparty level, surfacing stress that would not reach a financial statement for another two or three quarters.

FAQ

Frequently Asked Questions

  • Is the Strait of Hormuz open right now?

    As of mid-September 2026, it is effectively closed to routine commercial shipping. It closed on 28 February, reopened briefly under a US–Iran memorandum from around 17 June, and closed again in early July after attacks on commercial vessels.

  • How much trade passes through the Strait of Hormuz?

    Approximately 20% of globally traded oil and a comparable share of LNG in peacetime conditions, alongside container traffic serving the UAE, Saudi Arabia, Qatar, Kuwait, Iraq and Bahrain.

  • What happens to trade credit when a chokepoint closes?

    Undelivered cargo stalls invoicing and payment release, extending days sales outstanding across the affected chain. Counterparties with concentrated exposure show payment-timing drift well before default, which is why behavioural monitoring gives earlier warning than financial reporting.

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Portrait of Nour KorekNK
Written by

Nour Korek

Chief Technology Officer

Nour is a software executive and entrepreneur with over 16 years of experience in engineering leadership and platform architecture. He is the founder and CEO of Fusion Second, a software development company delivering scalable web and mobile platforms for international clients across publishing, logistics, and fintech. At CERTY, Nour leads the engineering team building the platform’s AI scoring engine, including the machine-learning and OCR pipelines that transform raw financial and operational data into credit intelligence, compressing an assessment process that once took months into hours.

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