European Union naval personnel intercepted radio transmissions from Iran’s Revolutionary Guard Corps warning ships that passage through the Strait of Hormuz is prohibited.
Critical Chokepoint for Global Oil
The Strait of Hormuz serves as a vital artery for international energy trade, channeling 20-30% of the world’s seaborne oil exports from key producers including Iran, Saudi Arabia, Iraq, and the United Arab Emirates.
Escalating Regional Tensions
This development follows heightened military activities in the region, with Iranian forces previously imposing restrictions on the strait in response to external pressures. Officials from the EU’s Operation Aspides noted the transmission but emphasized that no formal closure announcement has come from Iranian authorities.
Market Implications and Oil Price Surge Fears
Analysts warn that a full blockade could propel global oil prices beyond $120-130 per barrel, marking a surge of over 70% from current levels around $70. Such an event risks triggering widespread financial volatility, including sharp movements in currencies and equities as investors seek safe-haven assets.
