The blockade of the Strait of Hormuz disrupts 20% of global oil supply, pressuring prices amid low U.S. strategic reserves.
President Donald Trump reimposed a naval blockade on Iran after ceasefire talks collapsed, tightening access to the Strait of Hormuz. The route transports roughly 20% of the world’s oil supply, raising concerns over prolonged supply disruptions.
Crude oil prices remain near $79 per barrel, down from March highs above $100 but elevated due to persistent geopolitical tensions. U.S. strategic oil reserves have dropped to their lowest levels since 1983, limiting the government’s ability to stabilize markets.
Oil companies have seen mixed impacts, with refineries facing higher input costs while producers benefit from stronger margins. Gasoline prices in the U.S. have risen as supply chain disruptions ripple through the market.