Strait of Hormuz Closure Sparks Global Energy Crisis Amid US-Iran Tensions
The Middle East's critical trade routes are under strain as tensions between the US and Iran escalate. The Strait of Hormuz, which handles over 20% of global crude supply, is essentially shut down due to the conflict. This has triggered a global energy crisis.
Shipping traffic in the Bab Al Mandeb strait, connecting the Red Sea to the Gulf of Aden and the Indian Ocean, has also been disrupted after attacks by Iran-backed Houthi rebels in Yemen.
A Saudi oil tanker was attacked in the Red Sea on Wednesday, causing a fire. The Houthis claimed to have targeted two Saudi tankers, raising concerns about oil supplies from this key chokepoint.
Analyst Sasha Foss warns that a simultaneous closure of both straits would severely tighten physical oil markets.