Recent military strikes by the United States and Israel targeting Iranian cities on Saturday have intensified disruptions in the Strait of Hormuz, a maritime chokepoint responsible for 21% of global oil consumption. Iran's Tasnim News Agency reported that major international oil firms and shipping conglomerates suspended vessel transits through the strait this week after the Islamic Revolutionary Guard Corps (IRGC) declared it closed to navigation.
The strait, bordered by Iran and Oman, serves as the primary transit route for crude oil from Saudi Arabia, Iraq, and the UAE. Analysts warn that prolonged closure could push oil prices above $150 per barrel, with Brent crude already surging 12% this week. While alternative routes like Saudi Arabia's East-West Pipeline exist, their capacity covers less than 40% of Hormuz's daily 21 million barrel throughput.
Global markets reacted sharply to the developments, with Japan's Nikkei falling 3.1% and European energy stocks rallying 8% at Monday's opening. The Chinese mainland's Ministry of Commerce confirmed it is coordinating with ASEAN partners to activate emergency oil-sharing reserves.
