Oil and gas prices have surged as tankers are unwilling or unable to transit the strait. US President Donald Trump has said that the US will provide insurance guarantees to vessels travelling through the Gulf to help ensure the flow of energy and, “if necessary,” the US Navy will escort tankers. Prolonged disruption to exports out of the region threatens to unleash a wave of global inflation.
Maritime traffic through the Strait of Hormuz has almost completely stopped in the days since the US and Israel launched strikes against Iran.
Iran sits above this strategic waterway, which is a vital route for exports of oil, gas and other commodities from the Persian Gulf. Its Islamic Revolutionary Guard Corps has warned ships not to sail through the passageway, saying that vessels “could be at risk from missiles or rogue drones,” according to Iran’s semi-official Fars news agency. Iran has targeted tankers, and some of the biggest insurers are withdrawing coverage of war risk for ships in the area.
