Lead Iran’s decision to close the Strait of Hormuz again after a brief reopening has heightened uncertainty in global oil markets, as the waterway carries roughly 20% of worldwide oil and LNG shipments. Context The Strait of Hormuz is a critical chokepoint for energy trade, and its intermittent closures have historically triggered volatility in oil prices and supply expectations. Key Data The waterway typically transports about 20% of global oil and LNG shipments. The recent shutdown follows a brief reopening after a ceasefire announced just after Easter, but the situation remains fragile. Analysis Veriten partner Arjun Murti, an energy markets analyst, told World Oil that the closure is "completely untenable for the global economy" and that the longer it remains closed, the greater the risk. He noted that the market had been operating under the assumption that the Strait would imminently reopen after the ceasefire, but that has not proven correct. Murti warned that if shipping volumes fail to recover, news of fuel shortages in Asia and possibly Europe could grow. He added that the trajectory of oil markets hinges on whether stable flows can be restored, and that significantly higher flows are needed soon to avoid short‑term price spikes and reduced economic activity worldwide. Outlook With the Strait’s status still uncertain, upstream operators are likely to adopt a cautious stance, maintaining capital discipline while monitoring flow volumes. The market will closely watch for any signs of sustained transit to gauge whether price spikes will materialize or if the supply shock will subside.