Hormuz at the Brink: Iran's Threats Choke Global Oil Flow

Iran's Revolutionary Guard warned that ships passing through the Strait of Hormuz could be set ablaze, triggering a near-standstill in traffic at the chokepoint and threatening roughly a fifth of global crude supply. Tanker volumes have plunged, insurers pulled back, and several Gulf producers have cut output as shipping firms suspend bookings. The disruption has pushed Brent above $90 and gasoline prices higher—especially in California—while a U.S. plan to insure and possibly escort ships faces feasibility questions. Stores and existing tankers offer some cushion, but a longer conflict could squeeze energy supplies and global GDP.