Strait of Hormuz closure escalated on Thursday after Iran’s top joint military command said all vessels must stay out of the waterway. The command said the ban covers oil tankers and commercial ships. It also warned that any ship trying to pass would be targeted. Shortly after, Iran’s Revolutionary Guard Corps Navy said it struck two vessels it called violators.
The move marked a sharp escalation after two days of U.S. strikes on Iranian territory, according to the source. Iran had also warned that any U.S. military action would bring heavy retaliation. As a result, the conflict shifted from threatened disruption to active action against shipping.
Strait of Hormuz Closure Threatens Oil Flows
The source said the Strait of Hormuz handles about a fifth of global oil flows. Therefore, the closure has direct implications for oil supply and tanker traffic. It said the move should push Brent and WTI higher. Freight and insurance costs for tankers in the region should also rise.
Risk assets should come under pressure as well, the source said. Meanwhile, markets will watch whether Iran can enforce the closure and how long it lasts. That matters because Gulf exporters and Asian buyers rely heavily on the route.
Shipping and Energy Supply in Focus
The source described the strait as one of the world’s key chokepoints for oil and gas shipments. A long closure backed by force would be one of the most severe hits to global energy supply chains in decades, it said. Exporters across the Gulf and Asian refiners would face the impact.
Attention now turns to the response from shipping firms, insurers and naval forces in the region, according to the source. In addition, markets will watch whether any force is used to reopen the waterway. The latest step came after Washington confirmed a second straight day of strikes on Iranian air defences, radar sites and naval assets.
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