Washington, United States. The United States is pushing other countries to form an international coalition to restore freedom of navigation in the Strait of Hormuz, according to a State Department cable seen by Reuters. Oil prices surged to their highest in more than four years on fears of prolonged disruptions to global fuel supplies.
Strait closure and energy market impact
Two months into a war that began with U.S.-Israeli strikes on Iran, the Strait of Hormuz remains closed, cutting off 20% of the world’s oil and gas supplies. The disruption has driven global energy prices higher and increased concerns about the risk of an economic downturn.
U.S. measures and stalled diplomacy
Efforts to resolve the conflict have reached an impasse, with the United States seeking to break it by imposing a naval blockade on Iran’s oil exports. With talks stalled, U.S. President Donald Trump is scheduled to receive a briefing on Thursday on plans for a series of fresh military strikes on Iran aimed at bringing it back to negotiations, according to an Axios report late Wednesday.
Oil price surge
Brent crude topped $125 a barrel at one point, with gains partly attributed to technical factors related to the contract’s expiry later on Thursday. Since the start of the year, Brent has more than doubled, rising on Thursday to its highest level since March 2022, contributing to inflation and pushing fuel prices higher worldwide.
Iran’s warnings and nuclear dispute
Iran has said it will continue disrupting traffic through the Strait as long as it feels threatened. Tehran warned on Wednesday of “unprecedented military action” if the United States continues blockading Iran-linked vessels. Trump has said Iran cannot have a nuclear weapon, while Tehran says its nuclear ambitions are peaceful.
Trump social media post
In a social media post on Wednesday, Trump said, “They don’t know how to sign a non-nuclear deal. They’d better get smart soon!” without detailing what such a deal would involve. The post included a mock-up image of Trump wearing dark glasses and holding a machine gun, captioned, “No more Mr. Nice Guy.”
How do you think the Strait of Hormuz closure will affect fuel prices where you live?