Oil at $110, global panic rising: Now NATO may step into the Hormuz crisis

NATO is discussing whether to help ships pass through the blocked Strait of Hormuz if Iran does not reopen the strategic waterway by early July, Bloomberg reported on Tuesday, citing senior alliance officials and diplomats.

The discussions mark a potential shift in the alliance’s position after months of resistance from several European members to direct involvement in the US-Israeli conflict involving Iran.

According to the report, the proposal already has support from several NATO countries, although unanimous backing has not yet emerged. NATO leaders are scheduled to meet in Ankara on July 7-8, where the issue is expected to figure prominently.

The Strait of Hormuz, through which nearly one-fifth of the world’s oil and liquefied natural gas supplies pass, has remained blocked since Iran shut the waterway after the US and Israel began bombing the country on February 28.

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The prolonged disruption has intensified pressure on global energy markets. Fuel prices have climbed to around $110 per barrel, nearly 50% higher than pre-war levels, worsening fears over inflation and slowing global growth.

Bloomberg reported that some NATO members now believe intervention may become unavoidable if the blockade continues.

A senior NATO official said that while several allies still oppose authorising a NATO mission in Hormuz, support could grow if economic damage deepens.

A diplomat from a NATO country said several members favour helping reopen the strait, though others remain cautious about being pulled further into the conflict.

The issue has become a major point of friction between the United States and its European allies. President Donald Trump has repeatedly criticised NATO partners for refusing to support his push to reopen the strait. 

Washington recently announced plans to withdraw 5,000 troops from Germany, adding to tensions within the alliance.

In April, NATO allies publicly rejected Trump’s appeal to support a blockade operation in the region.

“We’re not supporting the blockade,” British Prime Minister Keir Starmer told the BBC at the time. “My decision has been very clearly that whatever the pressure, and there’s been some considerable pressure, we’re not getting dragged into the war.”

Some NATO countries continue to openly oppose the conflict. Spain has blocked the US from using its airspace and military bases for operations against Iran, while most other allies have quietly allowed logistical access to their facilities.

At the same time, France and the United Kingdom are leading separate efforts to prepare navigation-security plans for Hormuz once fighting eases.