Iran's Revolutionary Guard announced the closure of the Strait of Hormuz, warning that oil exports from the region to the U.S. and Israeli allies would be blocked until the ongoing conflict ends.
On March 2, Iran's Revolutionary Guard declared the Strait of Hormuz closed and issued a severe warning against allowing oil exports to be transported through the area to allies of the United States and Israel until the conflict is resolved. This move has significant implications for global oil transport and security given that around 25% of maritime oil is transported through this strategic strait.
As of Tuesday, only two vessels had successfully navigated the Strait of Hormuz in the past 24 hours, while the pre-war average was approximately 60 vessels per day. This drastic reduction in maritime traffic suggests a heightened state of alert and tension in the region, particularly with reports of at least ten vessels being attacked since February 28. The ongoing military actions and threats are causing significant disruptions and uncertainties for global energy markets.
The closure of the Strait of Hormuz, a critical passage for not only oil but also about 20% of natural gas deliveries, has led to a sharp increase in crude oil prices – despite a slight dip by Tuesday. However, prices are currently over 30% higher than prior to the onset of the conflict. This development raises critical concerns regarding energy supply stability and further escalations in regional tensions involving major powers like Iran, the U.S., and Israel.
