Iran Closes Strait of Hormuz, Disrupting Global Energy

The closure of the Strait of Hormuz in early March 2026 has triggered the most severe disruption to global energy supplies in modern history, halting nearly all oil and liquefied natural gas shipments through the vital waterway and sending commodity prices soaring worldwide. The blockage, which began after Iranian forces responded to U.S. and Israeli airstrikes on Iranian targets starting February 28, has cut flows from about 20 million barrels per day of crude oil and products to a fraction of that volume, affecting roughly one-fifth of the world's seaborne oil trade.

The International Energy Agency described the event as the largest supply interruption the global oil market has ever faced, with Gulf producers slashing output by at least 10 million barrels per day and exports disrupted by nearly 20 million barrels daily. In a statement, IEA Executive Director Fatih Birol warned that the crisis surpasses the severity of previous shocks in 1973, 1979, and 2022 combined, projecting April disruptions to double those of March. To mitigate immediate shortages, the agency coordinated the release of 400 million barrels from emergency reserves last month.