Home / War and Conflict / Strait of Hormuz closed, global oil prices surge
Strait of Hormuz closed, global oil prices surge
12 Mar
Summary
- Iran closed the Strait of Hormuz, vital for global oil and gas.
- Daily, 138 vessels carrying 14 million barrels of crude pass.
- Oil and gas prices have significantly increased in the last 12 days.
In early February 2026, India Inc. experienced a brief respite following the finalization of a US trade deal, anticipating an end to trade disruptions. However, this hope was dashed by the end of the month.
On February 28, 2026, a significant geopolitical event occurred when the United States attacked Iran. Contrary to expectations of collapse, Iran responded by closing the Strait of Hormuz, a critical maritime route. This strait is vital, typically facilitating the daily transit of 138 vessels that carry approximately 15% of global oil and 20% of gas demand.
The closure of this crucial passageway, which connects the Persian Gulf to the Arabian Sea, has led to a substantial increase in oil and gas prices over the past 12 days. The disruption's severity far exceeds that caused by previous trade tariffs, creating significant global economic instability.
