Hormuz Strait Closure Continues, Oil Prices Likely to Remain High

The Strait of Hormuz has been at the center of the conflict between the US-Israel and Iran since late February 2026. The strait, which connects the Persian Gulf to the Gulf of Oman, has been effectively closed by Iran due to the ongoing fighting.

Tehran's national security chief Mohammad Bagher Zolghadr recently issued a list of demands that the US must meet before Iran reopens the Strait of Hormuz. These demands include lifting the US naval blockade of Iranian ports and withdrawing military forces from the region. The EIA estimates that about 20 million barrels of oil, or around a fifth of global daily production, flows through the strait every day.

Energy analysts warn that oil prices are likely to remain high until the Strait of Hormuz can be reopened. Saudi Arabia and the UAE are trying to expand alternative routes for crude oil shipments, but these efforts may not be enough to offset the impact of a prolonged closure.