Strait of Hormuz closure threat raises fresh concerns for global trade

Iran's Islamic Revolutionary Guard Corps (IRGC) has announced the closure of the Strait of Hormuz to all commercial vessels following renewed U.S. military strikes, escalating tensions in one of the world's most critical maritime chokepoints. The strait handles roughly one-fifth of global oil shipments and a significant share of LNG exports, making any disruption a major concern for energy and shipping markets.

The announcement has intensified fears of supply chain disruptions, higher freight costs, and rising marine insurance premiums. Energy analysts warn that a prolonged blockade could push crude oil prices sharply higher, with some forecasts suggesting prices could approach $150 per barrel if hostilities continue.

For India, the development is particularly significant as the country relies heavily on crude imports routed through the Gulf region. Shipping operators, charterers, and commodity traders are closely monitoring vessel movements and security advisories as uncertainty persists over the actual enforceability of the closure and the future of maritime traffic through the strategic waterway.