NEW DELHI — Iran has officially closed the Strait of Hormuz and issued a warning to oil tankers, escalating tensions in the region and triggering expectations of a sharp rise in crude oil prices in the coming days.
Iranian officials told state media that the strategic waterway had been shut and warned that if vessels attempt to pass through, “the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze.”
The Strait of Hormuz handles roughly 20% of the world’s daily oil consumption. At its narrowest point, the waterway is about 33 kilometers (21 miles) wide. It connects major oil producers — including Saudi Arabia, Iran, Iraq and the United Arab Emirates — to the Gulf of Oman and the Arabian Sea.
Energy analysts said markets reacted nervously to the move, with concerns mounting that a prolonged conflict could disrupt global oil supplies and destabilize one of the world’s most critical energy corridors.
The closure follows U.S. and Israeli strikes on Iranian targets aimed at weakening the country’s leadership and military capabilities. In response, Iran launched multiple missile barrages at Gulf states, further intensifying the conflict.
Shipping markets have also felt the impact. According to reports, charter rates for liquefied natural gas tankers in the Atlantic Basin have surged to more than $200,000 per day — nearly double previous levels — after Qatar shut down LNG production as the conflict spread across the region.
Crude oil prices rose about 1% in early trading Tuesday after surging more than 10% on Monday as markets reopened amid escalating hostilities in West Asia.
The spike in oil prices carries significant implications for India, which imports nearly 90% of its crude oil requirements. In fiscal year 2025, India’s oil imports were valued at approximately $160 billion.
The United States said it has contingency plans to address rising oil prices and safeguard global shipping lanes while continuing military operations aimed at crippling Iran’s missile arsenal and naval power.
Secretary of State Marco Rubio, speaking at the U.S. Capitol, acknowledged that markets were reacting to developments in the region but said Washington had anticipated potential fallout from the escalating conflict. (Source: IANS)
