Oil Prices Soar After Iran Shuts Hormuz Strait Again, Threatening Global Supply

Global oil prices soared sharply after tensions between the United States (US) and Iran heated up. The global energy market was rocked by Iran’s decision to announce the closure of the Strait of Hormuz to all ship traffic, including oil tankers and commercial vessels. As a result, crude oil prices immediately jumped by more than 2 per cent in the latest trading. Brent crude was recorded up US$2.30 to US$95.40 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude strengthened US$2.60 to US$92.63 per barrel. During the trading session, US oil prices had even briefly surged by more than US$3 per barrel. The decision to close the Strait of Hormuz was announced by Iran’s top joint military command following the latest US military strikes on several locations within Iranian territory. The Islamic Revolutionary Guard Corps (IRGC) confirmed that the strategic waterway is closed to all shipping activity until further notice. “Effective immediately, due to unconducive security conditions in the region, the Strait of Hormuz is declared closed to all vessels, including oil tankers and commercial ships,” the IRGC said in a post on its official Telegram channel. The IRGC also issued a stern warning to any vessels attempting to transit the area. “Any ship that tries to cross the strait will be targeted,” the statement continued. The latest tensions arose after US Central Command confirmed strikes against a number of targets in Iran. In a social media post, the US military stated it was attacking “multiple targets in Iran” in response to aggressive actions undertaken by Tehran. US President Donald Trump had previously signalled that additional strikes would be carried out, warning that Iran would face greater consequences if the conflict continued.