The Strait of Hormuz, a critical maritime chokepoint for global oil shipments, remains closed for the third consecutive week following military actions initiated by the US and Israel against Iran on February 28. Brent crude surged to $99 per barrel this week, up from $60 earlier this year, as traders grapple with uncertainty over the conflict's resolution.
Global Response and Commodity Chaos
The G7 nations, coordinated by the International Energy Agency, are releasing 400 million barrels of strategic oil reserves to stabilize markets. Meanwhile, aluminum prices hit a four-year high, threatening manufacturing and construction sectors, while fertilizer costs have spiked due to disrupted shipments through the strait—a key route for one-third of global fertilizer trade.
Food Security and Regional Fallout
The World Food Programme warns of worsening food insecurity in the Middle East, particularly in Lebanon, where displacement is rising. Asian markets, including Japan's Nikkei and South Korea's KOSPI, fell sharply this week, while Thailand's 2026 GDP growth forecast risks being halved to 1% if the crisis persists.
