Within Hours Of Trump’s Announcement For Hormuz Blockade, Tanker Traffic Has Been Grounded To A Halt As Global Trade Affected
According to CNBC, within hours of Trump’s announcement for the Hormuz blockade, the tanker traffic through the Strait of Hormuz has come to a halt as many ships passing through the exit have been forced to turn back. As a result, the crude oil supply has been negatively affected.
U.S. WTI futures for May delivery jumped more than 8% to $104.40 a barrel, while Brent crude rose over 7% to $101.86. According to Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, complete blockade of the Strait of Hormuz could lead to global oil prices reaching up to $150 a barrel as one fifth of the world’s crude oil supply travels through the Persian Gulf.
The risks and dangers are far worse than previously anticipated. The halting of the energy supply chain could affect food and semi-conductor production, driving the inflation further up. In addition to this, Iran continues to threaten key industries, in particularly AWS (Amazon Web Services) in Bahrain and OpenAI data centres in the UAE which could have devastating impacts on the global technological progress of AI.
Furthermore, the current Hormuz blockade continues to violate International Law as the blockade is also considered legally contentious according to several experts, as neither the US nor Iran has the authority to close or impede passage through Hormuz. This damages the reputation of both of the nations and they could face legal troubles as the conflict eventually ends.
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