Iran's Grip on Hormuz Threatens Higher Energy Prices

The conflict in the Middle East has ended for now, but its impact on global energy markets may be felt for years to come. A two-week ceasefire brokered by Pakistan between the U.S. and Iran has been agreed upon, with Tehran pausing its blockade of oil and gas traffic through the Strait of Hormuz.

Iran's demand to act as a toll booth keeper at the world's most critical oil chokepoint could lead to higher energy prices for years to come. The strait is just 34 km wide at its narrowest point, between Iran and Oman, and around a fifth of the world's oil and gas flows through it.

A report suggests that Tehran may seek to charge a fee for ships transiting the strait under a permanent peace deal, with some media reports indicating that the toll could be as high as $2 million per transit.