{"id":501401,"date":"2026-03-03T14:57:24","date_gmt":"2026-03-03T14:57:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/501401\/"},"modified":"2026-03-03T14:57:24","modified_gmt":"2026-03-03T14:57:24","slug":"crude-oil-prices-rise-amid-tensions-in-key-persian-gulf-passage","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/501401\/","title":{"rendered":"Crude oil prices rise amid tensions in key Persian Gulf passage"},"content":{"rendered":"

DUBAI, United Arab Emirates (AP) \u2014 The widening war in Iran<\/a> has ground tanker traffic through the Strait of Hormuz to a halt and oil prices have soared, highlighting the important role the narrow passageway plays in global energy supply. <\/p>\n

The Strait of Hormuz is the narrow mouth of the Persian Gulf through which about a fifth of the world\u2019s oil passes<\/a>. Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. Most of that oil goes to Asia.<\/p>\n

Any disruption to traffic through the Strait of Hormuz is highly disruptive to the oil trade.<\/p>\n

\u201cThe scale of what is at stake cannot be overstated,\u201d said Hakan Kaya, senior portfolio manager at investment management firm Neuberger Berman. He said a partial slowdown lasting a week or two could be absorbed by oil companies. But a full or near full closure lasting a month or more would push crude oil prices, trading around $80 on Tuesday, \u201cwell into triple digits\u201d and European natural gas prices \u201ctoward or above the crisis levels seen in 2022.\u201d<\/p>\n

Here\u2019s what to know about the strait and the widening Iran war.<\/p>\n

\"In<\/p>\n

\n In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows troops standing at attention during the guard’s drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)\n <\/p>\n

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows troops standing at attention during the guard’s drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)<\/p>\n

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\"In<\/p>\n

\n In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows troops standing at attention during the guard’s drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)\n <\/p>\n

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows troops standing at attention during the guard’s drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)<\/p>\n

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Add AP News as your preferred source to see more of our stories on Google.<\/p>\n

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A key waterway for global shipping<\/p>\n

The Strait of Hormuz is a bending waterway, about 33 kilometers (21 miles) wide at its narrowest point. It connects the Persian Gulf to the Gulf of Oman. From there, ships can then travel to the rest of the world. While Iran and Oman have their territorial waters in the strait, it\u2019s viewed as an international waterway all ships can ply. The United Arab Emirates, home to the skyscraper-studded city of Dubai, also sits near the waterway. <\/p>\n

The strait long has been important for trade<\/p>\n

The Strait of Hormuz through history has been important for trade, with ceramics, ivory, silk and textiles moving from China through the region. In the modern era, it is the route for supertankers carrying oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. The vast majority of it goes to markets in Asia, including Iran\u2019s only remaining oil customer, China. <\/p>\n

While there are pipelines in Saudi Arabia and the UAE that can avoid the passage, the U.S. Energy Information Administration says \u201cmost volumes that transit the strait have no alternative means of exiting the region.\u201d<\/p>\n

Threats to the route have spiked global energy prices<\/a> in the past, including during the Israel-Iran war in June. <\/p>\n

<\/p>\n

\"In<\/p>\n

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows the Iranian Revolutionary Guard\u2019s drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)<\/p>\n

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows the Iranian Revolutionary Guard\u2019s drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)<\/p>\n

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Add AP News as your preferred source to see more of our stories on Google.<\/p>\n

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Is the strait closed?<\/p>\n

Iran has attacked several ships Strait of Hormuz and threatened any ships who try to pass through, effectively closing it.<\/p>\n

\u201cThe Strait of Hormuz is closed,\u201d declared Iranian Brig. Gen. Ebrahim Jabbari<\/a>, an adviser to the paramilitary Revolutionary Guard, vowing that any ships that passed through it would be set on fire.<\/p>\n

Previously, Iran temporarily shut down parts of the strait<\/a> in mid-February for what it said was a military drill. Oil prices jumped about 6% in the following days.<\/p>\n

In past times of tension and conflict, Iran has at times harassed shipping though the narrows, and during the 1980s\u2019 Iran-Iraq war, both sides attacked tankers and other vessels, using naval mines to completely shut down traffic at points. But Iran had not carried out repeated threats to close the waterway altogether since the 1980s, even during last year\u2019s 12-day war<\/a> when Israel and the U.S. bombarded Iran\u2019s key nuclear and military sites.<\/p>\n

Global shippers suspend operations<\/p>\n

Global shippers have issued service alerts saying they have suspended operations in the area. Danish shipping company Maersk, the world\u2019s biggest shipping company, said Sunday it is suspending all vessel crossings in the Strait of Hormuz until further notice. Other ocean carriers including Hapag-Lloyd, CMA-CGM and MSC made similar announcements.<\/p>\n

\u201cNo one is wanting to navigate it, and there\u2019s no insurer who\u2019s willing to stand behind any transport going through there right now.,\u201d said Tom Goldsby, logistics chairman in the Supply Chain Management Department at the University of Tennessee. \u201cThose ships that got stuck in the Gulf are not going anywhere. … There\u2019s also a whole host of ships that were heading into the Gulf to replace them, and of course they\u2019re anchored or going elsewhere now.\u201d<\/p>\n

Data and analytics firm Kplr estimated on Monday there were 70 laden oil tankers and 75 clean tankers, which carry refined oil products, in the Mideast Gulf, seemingly waiting to pass through. That\u2019s roughly twice as many as usual, according to Kplr. Meanwhile, about 60 tankers are sitting just outside the Mideast Gulf, east of the Strait of Hormuz, in a holding pattern.<\/p>\n

__<\/p>\n

Anderson reported from New York.<\/p>\n","protected":false},"excerpt":{"rendered":"DUBAI, United Arab Emirates (AP) \u2014 The widening war in Iran has ground tanker traffic through the Strait…\n","protected":false},"author":2,"featured_media":501402,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,228580,793,228579,228578,801,1570,228242,210369,228581,2987,20446,800,1681,965],"class_list":{"0":"post-501401","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-ebrahim-jabbari","10":"tag-general-news","11":"tag-hakan-kaya","12":"tag-hapag-lloyd-ag","13":"tag-iran","14":"tag-iran-government","15":"tag-iran-war","16":"tag-strait-of-hormuz","17":"tag-tom-goldsby","18":"tag-traffic","19":"tag-transportation-and-shipping","20":"tag-washington-news","21":"tag-waterways","22":"tag-world-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/501401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=501401"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/501401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/501402"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=501401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=501401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=501401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}