Is The Strait Of Hormuz Open Or Closed?

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Last weekend, the Strait of Hormuz — a narrow and important shipping route where roughly 25% of the world’s maritime oil trade passes through daily — was reported to have been closed off again amid the ongoing Middle East conflict.

UK news agency BBC reported on Sunday (21 June) that direct talks had begun between the US and Iran in Switzerland, following the Iranian Military’s announcement that it had closed the strait over Israel’s attacks on southern Lebanon recently, which killed 47 people.

Iran’s Islamic Revolution Guard Corps (IRGC) accused the US of violating the US-Iran ceasefire deal, specifically the first clause of their 14-point memorandum of understanding (MoU) which agrees to “the immediate and permanent termination of military operations on all fronts, including in Lebanon”.

The US said traffic in Strait of Hormuz continues as usual

After Iran’s statement, US Central Command (Centcom) spokesperson Tim Hawkins said that “traffic continues to flow”, and that “Iran does not control the Strait of Hormuz”.

The unified combatant command of the US Department of Defense said 55 merchant ships transited the strait on Saturday (19 June) with more than 17 million barrels of oil for global markets.

At least five tankers passed through the strait on Saturday, according to tracking data monitored by BBC Verify.

How does this impact Malaysia economically?

Economy Minister Akmal Nasrullah Mohd Nasir told the Dewan Rakyat today (22 June) that Malaysia is going to face rising pressure on food production costs in the coming quarter as global supply disruptions linked to the Strait of Hormuz drive up fertiliser and animal feed prices.

According to The Sun, he said the impact of geopolitical tensions extends beyond energy prices and is now affecting logistics, shipping insurance, agricultural inputs, and wider global supply chains.

He added that Malaysia remains highly dependent on imports for key agricultural inputs, with roughly 63% of fertiliser requirements sourced from abroad. Fertiliser prices are projected to increase between 15 and 20 percent, while animal feed costs have already risen by around eight percent.

Meanwhile, sectors most exposed to the ripple effects include logistics, agriculture, food, manufacturing, chemicals, plastics, packaging, pharmaceuticals, and the electronics industry, according to Akmal.

Global freight costs have also nearly doubled, while insurance premiums for merchant vessels on high-risk routes have increased by up to 16 times per voyage.

Akmal said Malaysia’s economic fundamentals remain stable, despite external pressures. According to him, gross domestic product (GDP) grew 5.4% in the first quarter of 2026, supported by domestic demand and resilient exports, particularly in the electrical and electronics sector.

Inflation remains under control, with a slight rise to two percent in May from 1.9% in April, he added.

The government, according to Akmal, is monitoring the supply and pricing of essential goods daily while coordinating with Petronas and industry players to ensure energy security and diversify raw material sources.

He stressed that the government’s response is prioritised on stabilising prices, protecting consumers, supporting small and medium enterprises (SMEs), and strengthening both medium and long-term economic resilience.

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