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Waterway BlockConfirmedSettled

Ships stop crossing Strait of Hormuz after US and Iran trade strikes

Measured from 13 Jul 2026 (event start), not the 13 Jul 2026 announcement

S&P 500
+2.3%
VIX (fear index)
-3%
Key Takeaway

Oil & gas producers moved +6.3%, the largest reaction measured, though not statistically significant, meaning it may reflect normal market noise rather than the event itself.

XOM, CVX, COP · up

01

What Happened

The Strait of Hormuz, through which approximately one-fifth of globally traded oil and liquefied natural gas transits, has experienced a sharp drop in traffic to five-week lows following escalated US-Iran military exchanges. The United States launched approximately 140 strikes on Iranian targets over the weekend in response to Iranian attacks on a container ship, which caught fire and left a crew member missing. Iran responded with missile and drone strikes targeting American military facilities across Kuwait, Bahrain, and Jordan. Tehran explicitly claimed to have blocked transit through the Strait, while the US asserted it maintained control. Multiple commercial vessels have ceased transiting the chokepoint due to perceived maritime security risks. The June ceasefire agreement between the two nations has effectively collapsed, with President Trump declaring it over.

Full Analysis
Why It Matters

One-fifth of global crude supply at risk of sustained disruption; immediate 6 percent+ oil spike signals market expects prolonged closure; KOSPI crashed 8.95 percent and Asian equity markets opened sharply lower

Timing

Active as of July 13, 2026; closure began following weekend attacks and continues with no resolution timeline visible

About This Date

Reporting confirms transit disruptions occurring on July 13, 2026, with Tehran claiming the vital shipping route has been blocked due to ongoing US military action. The closure is actively happening as of market close.

Read how dates work →
04

How To Read This

Each sector below is a basket of named stocks. The percentage shown is the move beyond the overall market (S&P 500) , what event studies call the . A move only counts as when it sits clearly outside that basket's normal weekly swings.

05 · Move beyond the overall market

How Much Sectors Moved

Path over time. Click a sector in the legend to toggle it. Dashed lines mark key moments.

Oil tanker operators
-0.1%
STNG, FRO, INSW
Oil & gas producers
+6.3%
XOM, CVX, COP
Defense contractors
-2.0%
LMT, RTX, NOC
Gold
-1.3%
GLD
Airline stocks
-5.6%
DAL, UAL, AAL

Oil & gas producers moved most at +6.3% against the market, the direction you would expect from a waterway block. None of the moves cleared the significance threshold. Read the direction as flavour, not signal.

06 · how erratic prices became

Volatility

Volatility measures how erratic prices became, a separate signal from the direction of the move.

How Nervous The Market Got
VIX, the volatility index
-3%

Market fear eased

Before
17.2
Peak
20.7
After
16.7
How Much Choppier Each Sector Got
Realised volatility, before vs after
  • Oil tanker operators
    54%32%
    1.7x calmer after
  • Oil & gas producers
    29%28%
    volatility roughly unchanged
  • Defense contractors
    33%16%
    2.0x calmer after
  • Gold
    25%24%
    volatility roughly unchanged
  • Airline stocks
    45%40%
    1.1x calmer after

The VIX fell 3.0 percent across the window, essentially flat. Read this as the market's demand for protection, not the direction of any single sector.

A ratio above 1.00 means the sector's daily-price swings widened after the event. Oil & gas producers became the most erratic at 0.98×, and 0 of 5 sectors traded meaningfully wider than they did before. Volatility is a separate signal from direction: a sector can end flat and still have traded wildly along the way.

07 · peak move and reversion

Phases

SectorPeak MovePeak DayReverted By
Oil tanker operators+8.0%Day 9Day 11
Oil & gas producers+11.5%Day 19Still elevated
Defense contractors-5.4%Day 3Day 6
Gold+5.6%Day 17Still elevated
Airline stocks-13.3%Day 4Day 7

The reaction peaked around day 10 on average. 3 of 5 sectors reverted inside the window, 2 were still elevated at the close. A reaction that reverts is a shock priced in; one that stays is a re-rating.

09 · click to expand

Historical Precedents

10a · measured moves

Companies Most Affected

STNG
STNG
Oil tanker operators
+1.5%
FRO
FRO
Oil tanker operators
-3.2%
INSW
INSW
Oil tanker operators
+1.2%
XOM
XOM
Oil & gas producers
+5.6%
CVX
CVX
Oil & gas producers
+8.1%
COP
COP
Oil & gas producers
+5.0%
LMT
LMT
Defense contractors
-3.0%
RTX
RTX
Defense contractors
+0.3%
NOC
NOC
Defense contractors
-3.4%
GLD
GLD
Gold
-1.3%
DAL
DAL
Airline stocks
-2.3%
UAL
UAL
Airline stocks
-6.4%
AAL
AAL
Airline stocks
-7.9%
Confidence

Measured 35 days after the event. Full window complete.

This tool informs your decision. It does not give investment advice.