Traders halt oil shipments as Iran-US conflict escalates — Reuters
Companies halt oil shipments through the Strait of Hormuz (photo: Getty Images)
Traders and major oil companies have begun halting the transport of crude oil through the strategically vital Strait of Hormuz. The decision comes amid rising military tensions between Iran, Israel, and the US, according to Reuters.
Supply suspension
According to sources in trading circles, at least four major companies have temporarily stopped their vessels' movements. The move is a response to mutual attacks in the region and threats to shipping.
A senior trading official stressed that ships will remain in place for several days, highlighting the seriousness of the situation.
Danger alert
The EU naval mission Eunavfor Aspides has urged carriers to exercise maximum caution. Beyond direct confrontations with Iran, the situation is complicated by the activity of Yemen's Houthis.
According to sources, representatives of Eunavfor Aspides reported that the Houthis have threatened new attacks on Israeli and US ships in the Red Sea and the Gulf of Aden.
The rebels insist they are prepared to take radical measures to protect their maritime interests.
Region's significance
The Strait of Hormuz, located between Oman and Iran, is a critically important artery for the global economy.
Around one-fifth of the world's oil consumption passes through this narrow waterway. Any delays or disruptions here pose serious risks to energy stability.
Oil prices rise
The global fuel market is already experiencing turbulence. Recently, oil prices hit a yearly high amid production cuts and geopolitical instability.
Additional pressure on the market comes from shifting trade relations among major players—for example, imports of Russian oil to India are expected to fall by half.
Meanwhile, regional leaders are already reacting: both India and Iran have raised prices on their crude, setting the stage for further increases in global energy costs.
