As the U.S.-Iran war approaches its one-month mark, the global oil market is under strain, with Iran using its control over the Strait of Hormuz as leverage. This narrow passage, crucial for transporting about 20% of the world’s oil, has seen a dramatic reduction in ship transits—down by 90% to 95%—due to Iranian threats and attacks on vessels. Consequently, oil prices have surged, with Brent crude oil reaching nearly $113 per barrel, significantly impacting global economies and causing fears of shortages, especially in Asia. The cost of marine insurance for navigating the strait has also soared, but the primary concern for shipping companies is the safety of their crews amid the conflict. The situation remains tense, with no clear resolution in sight, as discussions about military escorts continue without concrete plans.
QUESTION: How might the ongoing conflict between the U.S. and Iran over the Strait of Hormuz influence future international relations and global trade policies?
Here’s what needs to happen before oil starts flowing through Strait of Hormuz again
