ðĻ Express! Iran threatens sailings in Strait of Hormuz
ðĻ Express! Iran threatens shipping in the Strait of Hormuz, hits the world's main oil shipping route, prepares for a surge in oil prices.
The situation of tension in the Middle East is having a direct impact on global energy security when Iranian forces have come out to intimidate and disrupt shipping in the Strait of Hormuz as a result of U.S. and Israeli attacks.
ð Academic key information and expected impact:
Route Significance: The Strait of Hormuz is a gas and oil transport route, accounting for 1 in 5 of the world, according to the US Energy Information Administration (EIA). About 20 million barrels of oil and petroleum products flow through the strait per day, equivalent to 20% of global oil demand.
Disruption: Iran's Islamic Revolutionary Guard (IRGC) sent a radio warning message to merchant ships that no ships would be allowed to pass through the Strait of Hormuz due to unsafe circumstances. As a result, major oil and shipping companies began to suspend shipping and ordered ships to turn back from this route. The act marked the cutting off of the world's most important oil route.
Price rises coming, financial analysts estimate, if a complete one-day blockade of the Strait of Hormus occurs, it could nearly double global oil prices from $66 to more than $120 per barrel.
# StraitOfHormuz # Oil price # Energy crisis # International news # Middle East# Iran # World economy

















































