Global oil markets are rattled as Iran reportedly closes the Strait of Hormuz less than 24 hours after agreeing to a ceasefire with the United States. The move comes amid Tehran’s objections to Israel’s ongoing attacks on Lebanon, triggering renewed supply concerns.
As at the time of writing, 08:10 AM WAT: Brent crude traded at $97.20 per barrel (+2.59%), while West Texas Intermediate (WTI) stood at $97.37 per barrel (+3.14%).
Reports indicate that the Iranian Revolutionary Guards may have mined sections of the strait, creating a “danger zone” along the usual shipping route. Around 800 ships remain stuck in the Gulf, highlighting the fragility of global oil supply.
The closure underscores the ongoing volatility in energy markets, as the Strait of Hormuz channels roughly a fifth of the world’s crude and LNG, meaning any disruption has immediate global implications.