Iran Closes Strait of Hormuz; Global Oil Prices Surge 25% as Trade Halts

Iran declared the Strait of Hormuz closed after US-Israeli strikes on Iran.

“Iran’s Islamic Revolutionary Guard Corps (IRGC) has said it maintains full control of the Strait of Hormuz, where United States President Donald Trump has said he is prepared to deploy the navy to escort tankers”

Al Jazeera

Maritime traffic came to a virtual standstill, with at least five commercial ships targeted.

Al Jazeera

About 20% of the world's oil supply normally transits the strait.

Brent crude surged almost 25% from $67 to $83 per barrel.

Iraq's Rumaila field cut production by 1.5 million barrels.

Natural gas prices in the UK doubled after QatarEnergy halted production.

Clarksons Research estimated about 3,200 ships were idle in the Gulf.

BBC

Al Jazeera reported that more than 10 oil tankers had been targeted.

Vessels also carry chemicals and fertilizers with potential knock-on effects.

China found its commercial interests caught in the crossfire.

“No One, Not Even Beijing, Is Getting Through the Strait of Hormuz Since the United States and Israel launched an attack on Iran a week ago, maritime traffic through the Strait of Hormuz has come to a virtual standstill”

CSIS

All Chinese tanker and container ships had ceased transits.

Dozens were left trapped in the Persian Gulf despite Beijing's calls to keep the strait open.

This underscored China's limited ability to shape the conflict.

The Dow fell over 1,200 points before paring losses.

Trump said the Navy would escort oil tankers through the strait if necessary.

New York Post

The IRGC stated it maintained full control of the strait.

Regional producers moved to increase output.