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Following Israel's recent attacks on Iran, global concerns have escalated regarding the Strait of Hormuz, leading to a surge in crude oil prices. However, on the second day of the crisis, critical global oil trade and other transportation activities through the strait have continued uninterrupted. Maritime experts warn that while the strait remains open, heightened security measures by shipowners could create risks of delays.
The Strait of Hormuz, connecting the Persian Gulf with the Arabian Sea, is a vital artery for global oil trade. Approximately 20 million barrels of oil and petroleum products are transported daily through this route, accounting for nearly one-fifth of the world’s oil supply. According to MarineTraffic, 34% of seaborne oil trade this year has passed through the strait. The last effective closure was during the Iran-Iraq ‘Tanker War’ in 1984, and despite threats since then, it has remained a key transit point for global oil and gas.
Amid the Iran-Israel conflict, Iran launched over 100 missiles targeting Tel Aviv and surrounding key installations in Israel late Friday night as part of ‘Operation True Promise Three,’ in retaliation for Israeli strikes. Iran claims its buildings and critical infrastructure were damaged in Israeli attacks. Explosions were reported in several Israeli cities on Saturday as well.
Jakob Larsen, Chief Security Officer at the Baltic and International Maritime Council, stated, “The situation is highly tense. Many shipowners are taking extra precautions and avoiding the Red Sea and Persian Gulf.” U.S. media outlet CNBC confirmed these details through Iranian sources.
Iran has withdrawn from scheduled nuclear talks with the United States, further intensifying tensions. Analysts warn that a closure of the Strait of Hormuz could skyrocket global oil prices and drive up the cost of essential goods.
AI/MR
