Iran has announced the closure of the Strait of Hormuz, Bloomberg reported.
According to Bloomberg, the movement of vessels through the Strait of Hormuz has come to a halt. Ships heading towards the waterway have been turned back, while a large number of vessels remain anchored near the Strait. The Strait of Hormuz holds critical importance for the international transportation of oil and gas.
The closure has raised concerns over disruption to crude oil supplies and a possible rise in prices.
It is pertinent to note that the Strait of Hormuz is regarded as one of the world’s most important maritime passages, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. Oil and gas are transported to global markets through this route.
Experts state that nearly 20 per cent of the world’s crude oil shipments pass through this corridor, while almost one-fifth of global LNG trade also transits via the same waterway.
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