IMPACT ON OIL IF IRAN CLOSES THE STRAIT OF HORMUZ Closing the Strait of Hormuz would cause a severe shock to global oil and shipping markets, according to Kepler Cheuvreux, though the firm says the risk remains low. The strait handles about 35% of global crude trade—around 13.8 million barrels per day—which cannot be rerouted. A closure would sharply lift oil prices and sideline much of the tanker fleet. While Iran’s own exports could be partly offset by Saudi supply, analysts expect any disruption to be short-lived, as Iran depends on oil revenue and the U.S. seeks to avoid higher prices. A more likely outcome would be higher war-risk insurance costs for tankers, passed on to charterers.(*Walter Bloomberg)