Iran Closes Strait of Hormuz to All Oil Tankers and Commercial Ships
The Lead
Iran has announced that the Strait of Hormuz has been completely closed to all oil tankers and commercial ships in response to recent US strikes on the country, and stated any vessel attempting to pass would be shot at.
The Event Details
The strait is one of the world’s most important maritime routes, as it is the only route to the open sea for oil producers in the Gulf. In peacetime, 20 percent of global oil and liquefied natural gas (LNG) is shipped through it. Following the first US-Israel strikes on Tehran on February 28, Iran closed the passage to shipping traffic. The waterway remains Iran’s most significant leverage in ongoing peace negotiations with the United States.
The Data Analysis
Since the blockade of the strait began, oil prices have soared as high as $126 per barrel, compared with a pre-war price of about $65. According to ship-tracking data from Kpler, 279 ships are known to have transited the strait between February 28 and April 12. However, at least 22 ships have been attacked, according to Kpler.
The Impact Analysis
The blockade of the Strait of Hormuz has caused one of the worst energy crises in decades, with experts warning of a looming global recession. The paralysis of the Strait of Hormuz has also affected the supply of fertilisers and pharmaceuticals to countries around the world since ships carrying these supplies have been unable to pass through the strait.
The Prediction
Analysts say the recent exchanges of fire show the two sides are testing each other’s resolve to maintain a fragile, temporary truce. However, Brussels-based military analyst Elijah Magnier told Al Jazeera the “tit-for-tat” series of attacks between the US and Iran is particularly “dangerous” because it “risks miscalculation” in an already-tense environment. The Iranian statement will jack up energy prices, which translates into pressure on President Trump to back off, according to Ali Vaez, director of the Iran Project and senior adviser at the International Crisis Group.