Strait of Hormuz closure would cause oil prices to surge, experts warn
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The Iran war is renewing concerns about the strategically vital Strait of Hormuz. A prolonged closure could sharply drive up oil prices, experts said.
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MoneyWatch Strait of Hormuz ship traffic slows to a crawl. Here's what to know about the key oil waterway. By Megan Cerullo Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo Updated on: March 2, 2026 / 4:44 PM EST / CBS News Add CBS News on Google The U.S. and Israel attacks on Iran are focusing attention on the Strait of Hormuz , a narrow but strategically vital waterway in the region that serves as a key artery for global oil shipments. Marine traffic through the strait has slowed to a trickle since the outbreak of hostilities last week, heightening concerns that the conflict could constrain oil supplies and sharply drive up energy costs, Wall Street analysts said on Monday. The U.K. Maritime Trade Operations Center reported attacks on several vessels in the area on either side of the strait and warned of elevated electronic interference to ship navigation systems. "Infrastructure is at risk throughout the region, and it's not just at risk because of deliberate attacks, but also inadvertent attacks," said Kevin Book, managing director at Clearview Energy Partners. "Shrapnel and debris from missile interceptions can fall onto facilities and disable them too, and so there are a number of challenges that come from this kind of conflict in an area with so much energy production." Here's what to know about the Strait of Hormuz. What is the Strait of Hormuz? The strategic sea passage, located on Iran's southern border, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Long an important commercial trade route, the Strait of Hormuz ordinarily enables the flow of about 20% of global oil and liquefied natural gas shipments. Experts describe it as a strategic "choke-point" for crude. The strait — almost 100 miles long and 21 m...
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