The United States and Israel launched attacks on Iran on Saturday (February 28), which could close the Strait of Hormuz, a key oil shipping route at the mouth of the Persian Gulf.
Iran has repeatedly threatened to close the strait, signaling it could disrupt the vital maritime artery that carries a fifth of the world’s oil consumption. But Tehran has never followed through on its threats to completely cut off access to the strait, as that would prevent it from shipping its own oil abroad and potentially provoke a rapid international response.
If Iran follows through on its threat, oil prices could rise sharply, dealing a huge blow to the global economy. In February, oil prices rose to their highest level in months as traders worried about the consequences of US military attacks on Iran.
On Saturday, traffic through the Strait of Hormuz effectively halted as many oil shippers and traders suspended energy shipments through the waterway amid security concerns and warnings from authorities.