Iran declared the Strait of Hormuz officially closed to all shipping in an unprecedented act of economic warfare, as the IRGC Navy deployed mines, fast attack boats and anti-ship missiles across the narrow waterway through which a fifth of the world's entire oil supply flows-triggering the most severe disruption to global energy markets since the 1973 Arab oil embargo and sending Brent crude surging past $110 a barrel within hours of the announcement.
The closure sent shockwaves through every corner of the global economy, with the IEA convening an emergency meeting to coordinate a release of strategic petroleum reserves, G7 energy ministers holding crisis talks, and the US Navy's Fifth Fleet launching urgent minesweeping operations to try to force the strait back open as insurance premiums on Gulf cargo shipments hit record highs and shipping companies began rerouting vessels on the far longer and more expensive route around Africa's Cape of Good Hope.
For the world's most import-dependent economies — particularly in Asia, where Japan, South Korea, India and China collectively import the vast majority of their oil through Hormuz-the closure represents an existential energy threat, with analysts warning that every week the strait remains shut could shave half a percentage point off global GDP growth while pushing inflation to levels that central banks have no conventional tools left to fight
