Tanker traffic through the Strait of Hormuz, a critical global oil shipping route, has plummeted amid escalating tensions between Iran and the US. Satellite data shows a 60% drop in vessel transits compared to pre-conflict levels, with many ships rerouting to avoid potential attacks. The Strait handles nearly 20% of the world’s oil supply, making it a strategic chokepoint for energy markets. Analysts warn that prolonged disruptions could trigger oil price spikes and supply chain bottlenecks. The collapse in traffic signals heightened geopolitical risk, which could destabilize global energy markets. Traders are closely monitoring military movements and diplomatic talks to assess the likelihood of a broader conflict. A prolonged crisis would likely push Brent crude above /barrel and increase volatility in energy-linked equities. Central banks and governments may also intervene to stabilize markets if tensions escalate. For Gulf economies reliant on oil exports, the situation poses dual risks: higher domestic energy costs and disrupted trade flows. Investors should watch for updates on naval activity, OPEC+ policy adjustments, and regional stock market reactions. The Strait’s reopening is critical for restoring normalcy, but geopolitical uncertainty remains a key overhang for global markets.

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