Oil shipping has largely paused in the Strait of Hormuz that links the oil-rich Persian Gulf to the open seas after the U.S. and Israel bombed Iran, with Iranian media saying the waterway is ¡°practically closed.¡±
Ships reported hearing a radio broadcast purporting to come from the Iranian navy announcing that transit through the waterway was banned. There¡¯s been no formal announcement from Tehran about the status of the strait, which is crucial for the flow of oil and gas, but several tankers that had been heading toward Hormuz turned around in recent hours. A large number had already paused to wait near the entrance to the waterway after the bombing started.
The disruption is impacting everything from crude oil tankers to container ships that carry furniture. The Strait of Hormuz is a crucial chokepoint for energy markets, because a fifth of the world¡¯s seaborne oil and liquefied natural gas typically passes through each day. It¡¯s unclear how long the disruption may last, and some vessels are continuing to sail through, though far fewer than would be normal.
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