A formal closure order for the Strait of Hormuz, backed by an actual strike on two vessels, marks a major escalation with direct implications for roughly a fifth of global oil flows. This moves the conflict from threatened disruption to active interdiction of shipping, and should drive a spike in Brent and WTI alongside surging freight and insurance costs for tankers in the region.Risk assets should broadly come under pressure. Markets will focus on whether the closure proves enforceable and how long it persists, given the strait’s importance to Gulf exporters and Asian buyers alike.
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Iran’s military says Strait of Hormuz is closed to all vessels including tankers, with violators to be targeted. IRGC Navy says it struck two vessels attempting passage.
Summary:
- Iran’s top joint military command announced the closure of the Strait of Hormuz to the passage of any vessels, according to a statement reported on Thursday
- The command said any vessel attempting passage will be targeted
- The closure order was confirmed to include oil tankers and commercial ships
- The IRGC Navy said two violator vessels that intended to illegally pass through the strait were struck
Iran’s top joint military command announced on Thursday the closure of the Strait of Hormuz to the passage of all vessels, marking a sharp escalation following two days of US strikes on Iranian territory.
The command said the closure applies to oil tankers and commercial ships alike, and warned that any vessel attempting to pass through the strait would be targeted. Shortly after the announcement, Iran’s Revolutionary Guard Corps Navy said it had struck two vessels it described as violators that had intended to pass through the strait illegally.
The Strait of Hormuz is one of the world’s most critical chokepoints for oil and gas shipments, with a substantial share of global seaborne crude exports passing through it daily. A sustained closure, backed by force, would represent one of the most severe disruptions to global energy supply chains in decades, affecting exporters across the Gulf as well as the Asian refiners that depend heavily on those flows.
The move follows repeated warnings from Iranian officials that any US military action would be met with heavy retaliation, and comes after Washington confirmed a second consecutive day of strikes on Iranian air defences, radar installations and naval assets
