Global oil markets in panic as Iran to close Strait of Hormuz

Global energy markets were plunged into chaos Monday after Iran announced it would close the Strait of Hormuz, the world’s most critical oil and gas shipping route. The dramatic escalation follows recent U.S. airstrikes on Iranian nuclear facilities, further intensifying regional tensions.

Brigadier General Alireza Tangsiri, Commander of the IRGC Navy, issued a stern televised warning, stating:

"The Strait of Hormuz will be shut down completely if aggression against our sovereignty continues. Iran will not allow its territorial integrity to be violated without a firm response."

The Strait, a narrow maritime chokepoint just 21 to 52 nautical miles wide, handles roughly 25% of global crude oil exports and a third of all liquefied natural gas (LNG) shipments. It is a lifeline for major oil producers such as Saudi Arabia, Iran, Iraq, the UAE, and Qatar, and critical for Asian economies including China, India, Japan, and South Korea.

Markets React Swiftly
The global energy sector responded immediately.

• Brent crude surged more than 6% in early Asian trading.
• WTI futures also spiked, as traders rushed to secure supply amid fears of a prolonged bottleneck.

Analysts say even the threat of closure is destabilizing.

"This is not just a regional crisis anymore — it’s a global economic flashpoint," said Dr. Noura Hadad, energy analyst at the Institute of Strategic Studies, London.

"If the shutdown becomes reality, we are looking at a potentially historic energy shock."

Broader Implications
A full-scale blockade could push oil prices well over $100 per barrel, upend global shipping routes, and further strain already fragile global supply chains.

The U.S. has not issued an official response, but reports suggest naval forces in the Persian Gulf have been placed on high alert.

The announcement follows a series of escalations in the region:

• U.S. airstrikes on Iranian nuclear infrastructure last week
• Iran’s missile barrage on Israel in retaliation
• Tehran’s public assurances of internal safety amid growing external tensions

As the world watches closely, the closure of the Strait — even temporarily — could mark the start of a global energy and security crisis with wide-reaching consequences.