The Blockade
Iran moved to block commercial shipping through the Strait of Hormuz, a chokepoint between Iran and Oman:
- ~500 oil tankers trapped in the Persian Gulf
- Only five oil tankers left the area in a single day
- The IEA declared this the largest supply disruption in the history of the global oil market
- Shipping insurance costs for the region surged
Why It Matters
The Strait of Hormuz handles about 20% of the world’s oil and significant trade between Asia, Europe, and the Middle East. Its disruption affects every consumer on the planet through higher energy and goods prices.
Sources: Al Jazeera, Bloomberg, IEA Oil Market Report