Oil Prices May Soar if Hormuz Strait Remains Closed The global oil market is on high alert as tensions continue to simmer around the Strait of Hormuz, a critical waterway through which nearly 20% of the world's crude exports are transported.
If the strait remains closed or severely restricted, Commerzbank has warned that oil prices could hit new highs.
The Strait of Hormuz is a vital artery of the global oil trade, connecting the Persian Gulf to the Gulf of Oman and serving as a chokepoint for oil shipments from Saudi Arabia, Iraq, Iran, and other major producers.