Global shipping has ground to a near halt in the Strait of Hormuz in the Persian Gulf since the U.S. and Israel launched airstrikes against Iran on Saturday.
Iran has declared the waterway effectively closed, stranding more than 100 vessels in the strait, through which roughly a quarter of the world’s seaborne energy passes each day. Oil prices hit a 14-month high of $82 Monday and remain elevated as the conflict widens, with Tehran's retaliatory strikesexpanding to hit oil refineries in Gulf neighbors hosting U.S. bases.
“With no quick de-escalation in sight, the Strait of Hormuz effectively closed and Iran showing a willingness to target energy infrastructure in the region, upside risks remain and they grow the longer the conflict drags on,” IG Australia market analyst Tony Sycamore said, per Reuters.
