TEHRAN (Kashmir English): The continued closure of the Strait of Hormuz is now causing concern about a deteriorating global energy crisis, as reported by a major American newspaper.
Sources within the oil industry have warned the Trump administration that the blockade is now affecting global oil distribution and could have a major effect on global energy and prices.
In reaction to the news, the price of US crude oil jumped by 2% to $102 per barrel, while Brent crude oil reached $106 per barrel.
Despite Trump’s appeal for help to open the Strait of Hormuz, many nations have chosen not to get involved. Japan and France have both refused to contribute naval vessels to the Strait.
However, the Chinese embassy in Washington announced that China now plans to play a constructive role by facilitating communication with the relevant parties in an attempt to ease the situation.
The closure of this critical chokepoint has increased global uncertainty, with energy markets and governments watching events with great interest.
Strait of Hormuz closure
Earlier, the global oil market entered a state of panic after Iran closed the Strait of Hormuz, one of the world’s most important oil shipping routes.
The move comes in response to recent U.S. airstrikes on Iran, escalating already high tensions in the region.
The Strait of Hormuz is a narrow but vital waterway connecting the Persian Gulf to the Arabian Sea. Every day, around 20 to 25 million barrels of oil, nearly 25% of global supply, pass through this chokepoint. Any disruption to traffic in the strait could lead to a severe spike in oil prices and global economic instability.
