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On the morning of Saturday, March 2, Iran announced that it would “strike” any ship attempting to pass through the Strait of Hormuz, a key global oil and gas transit corridor.
Many tankers are avoiding the area, partly to escape high war-risk insurance, while others remain anchored in the Persian Gulf.
Oil prices had already reached a seven-month high in February and are now expected to rise further.
The Strait of Hormuz is a narrow passage between the Gulf of Oman and the Persian Gulf. It is controlled by Iran, while commercial ships are protected by the U.S. Fifth Fleet, based in Bahrain.
It is the only maritime route in and out of the Persian Gulf, giving it global strategic and commercial importance. At its narrowest point, the strait is 33 km wide.
Approximately 20–30% of the global oil, natural gas, and liquefied natural gas (LNG) supply passes through it.
Nearly 20 million barrels of oil daily, worth around $500 billion in 2024, were transported through the strait.
Five of the world’s ten largest oil-producing countries (Saudi Arabia, Iran, UAE, Kuwait, and Iraq) export most of their oil through the strait, mainly to Asia.
(fyinews)
Around 20% of the world’s LNG passes through the Strait of Hormuz.
In recent years, Europe has increased LNG imports to reduce dependence on Russian gas.
Although Europe is not heavily reliant on LNG from Qatar (the largest exporter in the region), halts in exports to Asia would create a global LNG shortage, affecting European prices as well.
Already on March 2, oil prices rose by 8% and gas prices by 20%.
Official 2024 data show that 84% of crude oil and its byproducts, and 83% of LNG shipments through the strait, are destined for Asia.
Industries, transportation, and power grids in China, India, Japan, and South Korea rely heavily on oil and gas imports from Gulf countries.
Ten Greek-flagged vessels are in the Persian Gulf and five outside it, while roughly 325 vessels associated with Greece but under foreign flags are in the wider region, according to the Minister of Shipping, Vassilis Kikilias, on March 2.
There are 85 Greek sailors aboard the 10 Greek-flagged vessels, all reported safe, with continuous communication maintained.
