The Strait ... is closed ... for now

A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration

The Strait is closed ...

Feb 28 (Reuters) - An official from the European Union's naval mission Aspides said on Saturday that vessels have been receiving VHF transmission from Iran's Revolutionary Guards saying "no ship is allowed to pass the Strait of Hormuz".

The strait is the world's most vital oil export route, which connects the biggest Gulf oil producers, such as Saudi Arabia, Iran, Iraq and the United Arab Emirates, with the Gulf of Oman and the Arabian Sea.

The blowback ...

Iranian flag with stock graph and an oil pump jack miniature model are seen in this illustration taken October 9, 2023. REUTERS/Dado Ruvic/Illustration

LONDON, Feb 28 (Reuters) - Global energy markets face one of their gravest shocks in decades as joint U.S. and Israeli strikes on Iran and Tehran’s retaliatory missile attacks across the Gulf disrupt oil exports from the world’s most important producing region.

The scale of the disruption will likely be determined by the duration of the conflict, but for now the threat and the uncertainty are already enough to severely impact flows from the region that accounts for 20% of global oil supplies.

Barring a swift resolution, oil prices will likely see steep increases when trading opens on Monday morning. Benchmark Brent crude oil prices rose in recent weeks to around $70 a barrel, their highest since August 2025 as investors braced for military confrontation in the Middle East.

$70 will be but a pipe dream if this fubar continues ...