Skip to content
World Today News
  • Home
  • News
  • World
  • Sport
  • Entertainment
  • Business
  • Health
  • Technology
World Today News
  • Home
  • News
  • World
  • Sport
  • Entertainment
  • Business
  • Health
  • Technology
Wednesday, March 11, 2026
World Today News
World Today News
  • Home
  • News
  • World
  • Sport
  • Entertainment
  • Business
  • Health
  • Technology
Copyright 2021 - All Right Reserved
Home » gas price updates
Tag:

gas price updates

Business

Strait of Hormuz: Impact on Gas Prices Explained

by Priya Shah – Business Editor February 28, 2026
written by Priya Shah – Business Editor

Iran’s Revolutionary Guards Navy announced the closure of the Strait of Hormuz to all vessels on Saturday, February 28, 2026, escalating tensions in the Middle East and prompting a pause in oil shipments through the critical waterway.

The announcement, broadcast as a message to all ships stating that “all vessels passing through the Strait of Hormuz are prohibited” and “no ship, under any circumstances, is allowed to pass,” came amid escalating conflict between Iran and Israel, backed by the United States. The move immediately disrupted international shipping, with numerous tankers anchoring to the northwest and south of the strait, according to MarineTraffic.

The Strait of Hormuz, situated between Iran and Oman, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. At its narrowest point, it is approximately 33 kilometers (21 miles) wide, with designated shipping lanes only around 3 kilometers (2 miles) wide. It is considered an international transit route and a vital chokepoint for global energy supplies.

The closure threatens a significant portion of the world’s oil supply, with roughly one-fifth of global crude oil production – approximately 20 million barrels daily – passing through the strait. Analysts warn that a prolonged disruption could push Brent crude prices above $100 per barrel. Dolat Capital, a Mumbai-based brokerage, projected a price of $100 per barrel if the strait remained closed, while Equirus, another Mumbai-based firm, estimated a price rise to $76–$81 a barrel based on the direct supply loss of approximately 3.3 million barrels per day, representing about 3% of global supply.

As of Saturday evening, some of the world’s largest oil companies and trading houses had suspended crude and fuel shipments through the strait, citing fears of becoming a flashpoint in the escalating conflict. Reuters reported that several firms had paused voyages, with one senior executive stating, “Our ships will stay put for several days.” However, Bloomberg reported that at least 17 oil tankers were still transiting the strait in both directions as of 10:30 GMT, indicating a cautious but not complete halt to operations.

Qatar, the world’s largest exporter of liquefied natural gas (LNG), relies almost entirely on the Strait of Hormuz for its shipments. At least three LNG carriers traveling to or from Qatar have paused voyages to avoid the strait.

Iran produces an average of 3 million barrels of crude oil per day, according to OPEC, and nearly half of the country’s state income comes from crude exports. A prolonged blockade would risk substantial revenue losses for Iran, requiring it to maintain full control of the area.

The Iranian government’s decision follows increased military activity in the region. The Revolutionary Guards Navy issued its warning amid heightened geopolitical tensions, with vessels navigating the area closely monitoring official instructions. The United States and Israel have conducted strikes on Iranian targets in recent days, prompting retaliatory actions from Tehran.

February 28, 2026 0 comments
0 FacebookTwitterPinterestEmail

Search:

Recent Posts

  • Song Ping, Former Top Chinese Leader, Dies at 109

    March 4, 2026
  • WV High School Wrestling: State Tournament Preview – Cameron, Oak Glen & More

    March 4, 2026
  • Regional & National Football League Selection | France Football Matches

    March 4, 2026
  • Gnocchi Parisienne: Recipe & Wine Pairing for Airy Cheese Dumplings

    March 4, 2026
  • Matsuoka’s Instagram Live Stream Interrupted by Alarm | Gaming Incident

    March 4, 2026

Follow Me

Follow Me
  • Privacy Policy
  • About Us
  • Accessibility statement
  • California Privacy Notice (CCPA/CPRA)
  • Contact
  • Cookie Policy
  • Disclaimer
  • DMCA Policy
  • Do not sell my info
  • EDITORIAL TEAM
  • Terms & Conditions

@2025 - All Right Reserved.

Hosted by Byohosting – Most Recommended Web Hosting – for complains, abuse, advertising contact: contact@world-today-news.com


Back To Top
World Today News
  • Home
  • News
  • World
  • Sport
  • Entertainment
  • Business
  • Health
  • Technology
World Today News
  • Home
  • News
  • World
  • Sport
  • Entertainment
  • Business
  • Health
  • Technology
@2025 - All Right Reserved.

Hosted by Byohosting – Most Recommended Web Hosting – for complains, abuse, advertising contact: contact@world-today-news.com