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Now That Iran Has Closed The Strait Of Hormuz, How High Will The Price Of Oil Go?
As you will see below, even a British military base in Cyprus has just been hit. I think that the Iranians were hoping that the unexpected nations that they are targeting would be so traumatized that they would beg the United States to stop the conflict, but instead it seems like almost everyone is uniting against Iran. There is a growing consensus that there is no way that the regime in Iran can remain in place after this, and that means that this war could go on for an extended period of time.
Needless to say, this is not going to be good news for the global economy at all.
Our entire way of life depends upon cheap energy, and nearly a third of all oil that travels by sea must go through the Strait of Hormuz…
Positioned between Oman and Iran, the strait serves as a critical transit route – and potential chokepoint – for global crude, with about 13 million barrels per day moving through it in 2025, equal to approximately 31% of all seaborne oil flows, Kpler data showed.
It links major Gulf producers including Saudi Arabia, Iran, Iraq and the United Arab Emirates to the Gulf of Oman and the Arabian Sea.
Everyone agrees that the closure of the Strait of Hormuz would be a really big deal.
Unfortunately, it appears that the Iranians have already decided to pull the trigger.
It is being reported that the IRGC is warning vessels that the the Strait of Hormuz is now closed…
A European Union naval mission official told Reuters that vessels in the region are receiving marine radio warnings from Iran's Revolutionary Guard instructing ships not to pass through the Strait of Hormuz.
Apparently there were some tankers that chose not to heed the warnings from the IRGC, and so they got attacked.
The first tanker that got hit by the Iranians was named Skylight…
The first attack against a ship in the Strait of Hormuz occurred on Sunday morning.
Oman's Maritime Security Centre announced that an oil tanker named Skylight, flying the flag of the Republic of Palau, was targeted around five nautical miles (9.26km) north of Khasab Port.
In a statement shared on X, Oman authorities confirmed that there were 20 crew members on board, including 15 holding Indian nationality and 5 of Iranian nationality, and they were all evacuated.