Iran Closes Strait Of Hormuz, Disrupting Global Oil Shipments

As of March 1, 2026, the situation in the Strait of Hormuz has deteriorated significantly, with a reported 70 percent drop in vessel traffic following the Iranian Revolutionary Guards' announcement of the strait's closure. This drastic reduction underscores the escalating tensions in the region, as major oil companies and traders have suspended shipments, leading to fears of severe disruptions in global energy supplies. A top executive from a trading desk noted, "Our ships will stay put for several days," reflecting the immediate impact on operations. With approximately 20 million barrels of oil and a third of the world's liquefied natural gas (LNG) passing through the strait daily, the implications for international energy security are profound.