Iran Opens Strait of Hormuz Only For Chinese Ships, Warns of Military Action Against Any Unauthorised Crossing: Reports

Key Highlights

• The United States' ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH — More actions to come," Trump had said in a Truth Social post. What to Know About the Strait of Hormuz, a Key Passageway Essential for Global Energy SupplyThe widening war in Iran has ground tanker traffic through the Strait of Hormuz to a halt and oil prices have soared, highlighting the important role the narrow passageway plays in global energy supply. The Strait of Hormuz is the narrow mouth of the Persian Gulf through which about a fifth of the world's oil passes. Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran.
• Most of that oil goes to Asia. Any disruption to traffic through the Strait of Hormuz is highly disruptive to the oil trade."The scale of what is at stake cannot be overstated," said Hakan Kaya, senior portfolio manager at investment management firm Neuberger Berman.
• He said a partial slowdown lasting a week or two could be absorbed by oil companies.
• But a full or near full closure lasting a month or more would push crude oil prices, trading above $75 on Tuesday, “well into triple digits” and European natural gas prices “toward or above the crisis levels seen in 2022.”Strait of Hormuz A Key Waterway For Global ShippingThe Strait of Hormuz is a bending waterway, about 33 kilometers (21 miles) wide at its narrowest point.
• It connects the Persian Gulf to the Gulf of Oman.