Oil prices climbed sharply and global markets wavered after fighting involving the United States, Israel and Iran disrupted traffic through the strategic Strait of Hormuz, according to international media reports.
Al Jazeera reported that shipping through the vital waterway which carries about one-fifth of the world’s oil consumption along with significant gas supplies has slowed dramatically following Iranian attacks on vessels in the region.
An Iranian Revolutionary Guard Corps (IRGC) commander was quoted on Monday as declaring the strait “closed,” warning that any ship attempting to pass would be set “ablaze.” The threat has rattled the maritime industry and energy markets.
According to maritime intelligence analysts cited by Al Jazeera, traffic through the strait has fallen by roughly 80 percent. At least five oil tankers have reportedly been damaged, two people killed and around 150 vessels left stranded near the chokepoint separating Iran and Oman.
Michelle Bockmann of maritime analytics firm Windward told the network that freight costs from the Gulf had already surged sharply. Meanwhile, Control Risks director Cormack McGarry said ships in the region received a broadcast over international distress channels announcing the strait’s closure a warning that prompted many vessels to halt movement.
Vessel-tracking service Kpler indicated that only limited traffic continues, mainly involving ships flying Iranian and Chinese flags.
Energy markets reacted quickly. Reuters reported that Brent crude futures rose to about $79.44 per barrel in early Tuesday trading, extending gains after surging above $82 on Monday — the highest level since January 2025. US West Texas Intermediate crude also advanced to around $72.40 a barrel after posting strong gains in the previous session.
Market analyst Tony Sycamore of IG told Reuters that risks to oil prices remain tilted upward as long as the conflict continues and threats to regional energy infrastructure persist.
The geopolitical shock also rippled into equities. South Korea’s benchmark Kospi index fell more than five percent in afternoon trading, reflecting investor anxiety over Middle East instability. The index had previously been one of the world’s best performers this year, rising about 50 percent on the back of a technology-led rally driven by firms such as Samsung Electronics and SK hynix.
Analysts warn that any prolonged disruption in the Strait of Hormuz one of the world’s most critical energy chokepoints — could further tighten global oil supplies and increase volatility across financial markets.
