Iran and Oman Agree to Reopen Strait of Hormuz Amid US Conflict

Strait of Hormuz Traffic Crisis and Energy Impact

The closure of the corridor triggered an immediate collapse in commercial shipping, according to satellite imagery and data. Rafael Pampillón, an economics professor at IE Business School, told BBC Mundo that the waterway functions as the world’s major energy bottleneck, handling approximately one-fifth of global oil consumption and 30% of the world’s liquefied natural gas before hostilities began.

Shipping data shows that daily transits dropped from roughly 37 petroleum tankers on February 27 to near zero in the days following the outbreak of the conflict between the United States, Israel, and Iran. In response to the U.S. naval blockade surrounding Iranian vessels and ports, an Iranian spokesperson, Ebrahim Zolfaqari, stated that Tehran will not permit any oil shipments destined for the U.S., Israel, or their allies to pass through the strait, warning that vessels bound for those nations are considered legitimate targets.

Oil Market Consequences and Production Risks

The disruption has driven international benchmark prices upward, with Brent and WTI crude briefly exceeding $100 per barrel before stabilizing around $90, according to the article. Zolfaqari cautioned that prices could reach $200 per barrel depending on regional security developments.

Pampillón warned that a prolonged blockage risks forcing regional producers to shut down oil wells once onshore storage facilities reach full capacity. Halting production involves complex technical challenges, including the risk that closed wells may lose pressure permanently and fail to recover their original extraction capacity when reopened.