Iran Threat Roils Global Shipping
Iran's threat to close the Strait of Hormuz has sent global oil and gas shipping costs to all-time highs. Oil prices surged 7-8% in response to the escalating conflict, with tanker and LNG carrier rates spiking. The disruption is now forcing Europe to brace for significant inflationary pressure and a potential economic slowdown.
The current standoff was triggered by joint U.S.-Israeli strikes on Iranian military and nuclear infrastructure on February 28, which resulted in the death of Iran's Supreme Leader Ayatollah Ali Khamenei. In retaliation, Iran's Islamic Revolutionary Guard Corps (IRGC) began warning vessels that passage through the strait was "not allowed," and launched missile attacks on U.S. military facilities in Bahrain and Qatar. The Strait of Hormuz is the world's most critical oil chokepoint, with an average of 20-21 million barrels of oil transiting it daily—equivalent to about 20% of global petroleum consumption. The waterway also handles about a fifth of the world's liquefied natural gas (LNG) trade, primarily from Qatar. [cite: 5,
