The situation in the Persian Gulf region has reached a critical point following Iran's arbitrary closure of the Strait of Hormuz. Tehran's decision, a response to U.S. military actions, has led to the trapping of dozens of commercial vessels and a sharp rise in energy commodity prices. Global markets are reacting with panic, and experts warn of a prolonged paralysis in the supply of oil, LNG gas, and key chemical and fertilizer products.
Blockade of strategic strait
Iran has completely closed the Strait of Hormuz, blocking a key transport route for 20% of the world's oil and 30% of LNG gas.
Attacks on tankers
Iranian drones hit commercial vessels off the coast of Oman, causing fires and forcing EU navies to intervene.
Sharp price surge
Oil prices jumped by 13%, and European gas reserves at 30% raise concerns about energy security.
The blockade of the Strait of Hormuz has caused an immediate shock to the global economy. Iran officially announced the closure of the waterway to international shipping, a reaction to earlier attacks by the United States. Violence has escalated in the region – Iranian drones attacked at least one vessel, causing a fire on a tanker off the coast of Oman. Satellite data and ship tracking systems indicate that millions of barrels of oil are stuck inside the Persian Gulf. Particularly concerning are reports of 60 vessels linked to French capital that cannot leave the region. In response, Paris decided to send two warships to the Red Sea to support the EU mission to protect maritime routes. The Strait of Hormuz has been a geopolitical flashpoint for decades. The most serious crisis occurred in the 1980s during the so-called "Tanker War" between Iraq and Iran, which forced the U.S. Navy to escort commercial vessels as part of Operation Earnest Will. The economic repercussions of the conflict are severe and multidimensional. The price of a barrel of oil has risen by 13%, surpassing the $80 barrier, and experts predict this is just the beginning of an upward trend. The crisis is also hitting the LNG market, paralyzing exports from Qatar. For the European Union, whose gas reserves after winter have fallen to about 30%, this means having to compete for supplies with Asian markets. Furthermore, the blockade threatens the agricultural industry, as 33% of the world's fertilizer production is transported through Hormuz. Shipping companies such as MSC are already considering rerouting around Africa, which will drastically increase freight costs and prices for end consumers in Europe and North America. 33% — of global fertilizer transport passes through Hormuz