The Islamic Revolutionary Guard Corps (IRGC) Navy of Iran has declared the closure of the Strait of Hormuz to all vessels, according to a report by Reuters citing a post from the Tehran Times on X. The announcement was made via VHF radio, effectively shutting down one of the world’s most critical maritime chokepoints, which handles approximately 20% of global oil exports. This move comes amid heightened tensions in the region and raises concerns about potential disruptions to global energy supplies and shipping routes. The closure of the Strait of Hormuz would have immediate and severe implications for global markets. As a vital conduit for oil and gas shipments, any disruption here could trigger a sharp rise in energy prices, impacting economies worldwide. Traders and investors are likely to react with heightened volatility in oil markets, with Brent and WTI crude futures facing upward pressure. Additionally, the move could escalate geopolitical tensions, prompting responses from major powers like the U.S. and Saudi Arabia. For markets, the situation underscores the fragility of energy security in the Middle East. Investors should monitor developments closely, particularly any military or diplomatic responses from regional and global stakeholders. The focus will be on whether the closure is temporary or part of a broader strategy to exert economic and political leverage. Central banks and energy agencies may also need to reassess risk premiums in their forecasts.