Global Oil Prices Threaten to Exceed $150 as Iran Moves to Close Strait of Hormuz

Global Oil Prices Threaten to Exceed $150 as Iran Moves to Close Strait of Hormuz

Global oil prices could skyrocket beyond $150 per barrel following the Iranian parliament’s approval to shut the Strait of Hormuz, one of the world’s most critical oil transit routes.

The Strait, which links the Persian Gulf to the Arabian Sea, is essential to international energy supply, accounting for roughly 20% of global oil shipments and liquefied natural gas (LNG) trade.

This drastic decision by Iran comes in response to a recent U.S. led airstrike on Iranian nuclear facilities, which heightened tensions in the region and sparked threats of retaliation from Tehran.