Traffic through the Strait of Hormuz, a critical global oil transit route, has declined as the Iranian Revolutionary Guard issued warnings, raising concerns about potential disruptions to energy supplies. The Strait handles around 20% of the world's oil shipments, and any prolonged closure or escalation could trigger sharp spikes in oil prices, destabilizing global markets. Geopolitical tensions between Iran and the US have heightened, with military posturing and sanctions exacerbating risks. For markets, this situation introduces significant uncertainty, particularly for energy-dependent economies and multinational corporations. Traders are closely monitoring military movements and diplomatic efforts to assess the likelihood of conflict. The next critical developments to watch include statements from OPEC+ on production adjustments and any direct military engagements in the region.