Daijiworld Media Network – Washington
Washington, Mar 3: The ongoing conflict between the United States, Israel, and Iran has sent shockwaves through global energy markets, with the strategic Strait of Hormuz — a vital artery for world oil and gas supplies — on the verge of closure. Shipping through the strait, which carries nearly one-fifth of global crude oil and significant liquefied natural gas (LNG), has nearly come to a standstill following Iranian attacks on tankers.
An official from Iran’s Revolutionary Guard Corps (IRGC) warned that the strait was “closed” and any vessel attempting passage could be set “ablaze.” At least five tankers have been reported damaged, two personnel killed, and around 150 ships stranded in the area.
The disruption triggered a sharp rise in oil prices, with Brent crude crossing $79.40 per barrel on Monday, up from $73 on Friday, reflecting the escalating tensions following US-Israel strikes on Iranian targets. Maritime analysts say traffic in the strait has declined by over 80%, with major commercial operators, insurers, and oil companies temporarily withdrawing from the corridor.
Limited shipping continues mainly for vessels flying the flags of Iran and China. Experts caution that a complete shutdown is unlikely to be sustained, but the disruption has already sent ripple effects across global supply chains. Companies rerouting ships around the Cape of Good Hope face longer transit times and higher costs, while insurance premiums for Gulf shipping have surged to six-year highs.
Asia is most vulnerable, with China, India, Japan, and South Korea accounting for nearly 70% of crude oil shipments through the strait. Jet fuel and LNG supplies are also impacted, with Europe and other regions feeling the strain.
Energy analysts noted that while consumers may face rising costs, US oil producers stand to benefit from the surge. “The situation remains fluid, and the duration of disruption is uncertain,” said Rachel Ziemba, senior fellow at the Center for a New American Security.
The Strait of Hormuz crisis underscores the fragility of global energy routes amid escalating Middle East hostilities and highlights potential long-term risks to trade and supply chains worldwide.