The price of crude oil has already increased by 10 percent to about US$80 per barrel. Analysts have warned that if the conflict drags on, prices could exceed $100 a barrel. Global LNG prices have increased by 20 to 25 percent. Additionally, the US dollar has strengthened against major currencies, which is likely to further increase Bangladesh’s energy import costs.
About 20 percent of the world’s total oil and gas supply is transported by ships passing through the Strait of Hormuz.
It is the only maritime entry point to the Persian Gulf, bordered by Iran on one side and Oman and the United Arab Emirates on the other. Iran has issued a warning that no ships should attempt to transit the strait, with several ships waiting at its entrance.
At least 150 oil tankers are anchored outside the strait, according to data from shipping analytics platform Kpler. However, some Iranian and Chinese ships passed through there yesterday.
Kepler analyst Homayoun Falakshahi told international news agencies that the Iranian threat has effectively closed the strait. There are significant risks to this route, and rising insurance costs have led ships to avoid it altogether.