US-Iran Conflict Disrupts Strait of Hormuz, Threatening Global Oil Supply
Summary
Shipping through the Strait of Hormuz has nearly halted amid the US-Iran war, raising fears of disruptions to global oil and gas supplies. The US and Iran are locked in a stalemate over control of the strategic waterway as attacks, blockades and rising insurance costs keep commercial traffic away.
Key Points
- Shipping traffic through the Strait of Hormuz has dropped sharply, with only 14 ships reported crossing on Tuesday compared with about 120 before the war.
- The US says it has full control of the waterway, while Iran says conditions must be met before it fully reopens; experts describe the situation as a stalemate.
- Attacks on ships and the threat of mines, drones and harassment have pushed up insurance costs and discouraged commercial operators.
- The Strait of Hormuz carries about 20% of the world’s oil, making prolonged disruption a major risk for global energy supplies.
