Approximately 30 percent of the world’s oil and a third of the world’s LNG (liquefied natural gas) pass through the Strait of Hormuz every day. With tensions escalating between Iran and Israel and the US joining the war, closing the Strait of Hormuz is one of the options on the table for Iran to pressure its enemies, a move that would immediately reduce global oil supplies and drive up prices.
The CEO of Italy's Eni said the oil market has shown no signs of concern about the closure of the Strait of Hormuz and prices have not yet reached levels above $80. He said the closure of the Strait would primarily harm Iran and increase the likelihood of US intervention.
Three oil tankers caught fire near the Strait of Hormuz amid rising tensions between Iran and Israel; Ambrey Maritime Security confirmed the incident, and NASA has recorded three active fire spots in the area.
The cost of transporting oil by supertankers from the Persian Gulf to East Asia has increased by 60 percent in the wake of rising tensions between Iran and Israel. The ship booking market has been brought to a virtual standstill, with many Iranian tankers moving further away from ports, as the risk of crossing the Strait of Hormuz and concerns about disruption to maritime traffic have increased.
Rejecting rumors of an attack or sabotage in the recent fire incident on three oil tankers near the Strait of Hormuz, Ambrey Maritime Security Company announced that the incident was not a "security" incident and likely occurred due to a technical collision between two vessels.
Experts say that if Iranian oil exports are disrupted, Chinese refineries will be forced to use alternative oil from the Middle East or Russia, which will increase freight rates, tanker insurance, reduce the Brent-Dubai price differential, and put pressure on refinery profit margins, especially in Asia.
According to data from the international institute Kpler, total exports of crude oil and petroleum products through the Strait of Hormuz reached more than 21 million barrels per day in May 2025.
Reuters reported in an exclusive report that gas production in Phase 14 of the South Pars Joint Field - the world's largest gas field - has been partially halted following an Israeli airstrike on Iranian energy facilities.
As reciprocal attacks between Iran and Israel escalated and vital energy facilities were targeted, a wave of concern swept through the Persian Gulf stock markets; the region's stock markets faced a significant decline.
The unprecedented growth of outsourcing in Iran's oil industry is a wake-up call that experts consider a threat to the safety and productivity of the industry. Referring to the outsourcing of activities in this area, Shahriar Aghaei, a member of the Board of Directors of the Oil Fund, said that due to the lack of adequate supervision and the nature of contractors who seek greater economic benefits, safety issues in the workplace are less addressed, which results in numerous accidents in the oil industry.
