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The Economic Times
The Economic Times

Crude oil crisis in Hormuz: Much more than just price and quantity

The ongoing war in Iran has done what was earlier only a possibility on paper, but never implemented-closure of the Strait of Hormuz. On 2nd March, when Iran announced its closure, the war suddenly graduated from being a regional conflict to a global crisis.

Over the past seven months, all other war objectives including Iran’s nuclear issue have been put aside and the key point is, how to open the blockade and ensure safe passage of ships across the Hormuz. The sudden breakout of conflict between the Houthis and Saudi Arabia in the Red Sea region, close to another crucial choke point, the Bab-al-Mandeb, has only worsened the global energy crisis.

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