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Tuesday, June 17, 2025

Oil Markets On Edge: How Iran Could Send Prices Through The Roof


The Strait of Hormuz is more than a narrow waterway between the Persian Gulf and the Gulf of Oman -- it is the lifeblood of the global oil market. Nearly 20% of the world's petroleum passes through this choke point daily, making it one of the most strategically vital passages on earth.

Yet, amid escalating tensions with Iran, the specter of Tehran closing or severely disrupting traffic through the Strait has thrown oil markets and global economies into a state of anxious uncertainty. The potential ramifications could be nothing short of catastrophic, sending oil prices soaring beyond current records and triggering shocks felt worldwide.

How Could Iran Close the Strait? ran's geographic advantage is stark: the country controls both shores of the Strait's northern edge, giving it enormous influence over maritime traffic. Closing or blocking the Strait is not merely theoretical. Tehran has demonstrated a willingness to use asymmetric naval tactics to threaten international shipping, employing fast-attack boats, mines, submarines, and anti-ship missiles.

ranian Revolutionary Guard Corps (IRGC) naval units frequently conduct aggressive maneuvers, shadowing commercial vessels and military ships alike. The regime's ability to deploy underwater mines--cheap, stealthy, and deadly--could quickly force a shutdown by making the waters too dangerous for passage. Even the threat of mined waters can paralyze tanker traffic, as companies will avoid risking their ships and crews. (Read More)