Iran Blocks Strait of Hormuz, Halting 20% of Global Oil

A U.S.-Israeli military campaign against Iran, launched in late February, has triggered the most severe global energy disruption in decades after nearly six weeks of conflict, with Iran's blockade of the Strait of Hormuz halting about 20 percent of the world's oil and liquefied natural gas shipments. The strait, a vital chokepoint for roughly 25 percent of seaborne oil trade, remains largely closed despite a temporary ceasefire agreement reached this week between the U.S. and Iran, leaving markets volatile and economies reeling from supply shortages equivalent to 11 million barrels of oil per day.

The blockade, imposed in retaliation for strikes on Iranian targets including the Kharg Island oil terminal, has driven Brent crude prices above 110 dollars per barrel, a rise of more than 50 percent since the war began. This shock surpasses the combined impacts of the 1973 OPEC embargo, the 1979 Iranian Revolution, and the 2022 energy turmoil following Russia's invasion of Ukraine, according to Fatih Birol, executive director of the International Energy Agency. "The world has never experienced a disruption to energy supply of such magnitude," Birol said in an interview with Le...