Strait of Hormuz Closure Sparks Global Economic Concerns

2026-03-04 08:38:28

(MENAFN) Iran’s decision to close the Strait of Hormuz in retaliation for US and Israeli attacks has intensified global inflation risks and heightened geopolitical tensions.

Brig. Gen. Ebrahim Jabbari, a senior adviser to Iran’s Revolutionary Guard Corps commander-in-chief, announced Monday that the strait was closed to all maritime traffic, warning that any vessel attempting to pass would be targeted.

The announcement immediately rattled global energy markets. Brent crude oil jumped above $79 per barrel, reaching its highest level since January 2025. Meanwhile, Qatari state-owned QatarEnergy halted all liquefied natural gas (LNG) production after two of its facilities were struck by Iranian attacks.

European gas markets saw dramatic increases, with April futures on the Dutch TTF hub closing at €43.3 ($50.42) per megawatt-hour — a 35.5% rise compared to February 27.

The heightened military risks in this strategically vital waterway also disrupted global maritime insurance. Leading insurers, including NorthStandard, the London P&I Club, Gard, Skuld, and American Club, issued cancellation notices citing war-related hazards in Iran and the Persian Gulf.

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