Strait of Hormuz in the Crosshairs
For energy markets, attention has turned sharply to the Strait of Hormuz — a narrow maritime artery through which roughly one-fifth of global oil supply and liquefied natural gas flows each day.
Iran wields significant influence over the chokepoint. On Saturday, vessels in the region were reportedly warned by Iran’s Islamic Revolutionary Guard Corps over radio that “no ship is allowed to pass the Strait of Hormuz,” according to Reuters.
Though analysts say a full closure would be nearly impossible and unprecedented, Iran has previously attacked tankers and laid mines in the strait. Even limited disruptions would amplify insurance costs and shipping premiums, driving prices higher as cargoes are rerouted.
In the immediate aftermath of the strikes, several oil majors and major trading houses suspended shipments through the strait, Reuters reported.
León cautioned that if the conflict spreads to oil infrastructure across the Gulf, “prices would push even higher.”
