Closure of the key oil transit route disrupts 20% of global crude flows, escalating tensions after military strikes on vessels.
Iran’s military declared the Strait of Hormuz closed to all vessels, including oil tankers, and struck two ships attempting passage. The move directly impacts roughly one-fifth of global oil supplies, heightening risks for energy markets and regional trade.
The strait, a critical conduit for Gulf exporters and Asian buyers, has faced threats of disruption before but never an enforced closure. Prior warnings from Tehran failed to materialize into action, keeping markets relatively stable until now.
Brent and WTI crude prices are expected to spike, alongside surging freight and insurance costs for tankers. Risk assets may face broader pressure as traders assess the closure’s enforceability and duration.