Oil markets rumble as Iran moves to restrict Strait of Hormuz traffic: report
President Donald Trump addresses the American people after the US and Israeli strikes on Iran.
Iran has reportedly moved to block navigation on the world’s most important oil export route after major US and Israeli strikes, raising fears of a major disruption in global markets.
A European Union military official told Reuters that ships in the region were receiving maritime radio warnings from Iran’s Revolutionary Guard ordering ships not to pass through the Strait of Hormuz.
Iran has not officially confirmed the order.
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Due to heightened tensions, several oil companies and trading companies have suspended shipments of crude oil and gasoline through the waterway, Reuters reported, citing business sources.
The development follows major strikes launched on Saturday by the US and Israel on Iran.
Aerial view of the Port of Fujairah, United Arab Emirates, in the Strait of Hormuz, on Dec. 10, 2023. (Reuters/Stringer/Reuters)
About 20 percent of the world’s oil passes through the Strait of Hormuz, a small but important channel that connects Gulf producers to global markets.
Major exporters, including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran, rely heavily on the route.
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Any further disruptions could send energy prices skyrocketing.
Brent crude, one of the world’s major benchmarks for oil prices, settled near $73 a barrel on Friday, but analysts warned prices could fall when markets reopen.
Smoke billows from a burning building hit by an Iran-bound airstrike after Israel and the US launched airstrikes on Iran in Seef district, Manama, Bahrain, Feb. 28, 2026. (Reuters/Stringer/Reuters)
“If the conflict continues until Sunday, oil prices may respond by increasing by $5-10 above the current base of $73, based on Iran’s request to close the Strait of Hormuz and disruption of tanker traffic,” energy analysts at Eurasia Group told Reuters.
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Analysts at Barclays issued an even stronger warning.
“Oil markets may have to deal with more fears on Monday,” Barclays analysts told Reuters. “As things stand right now, we think Brent can hit $100 [per barrel]as the market faces the risk of potential disruption amid the ongoing security situation in the Middle East.”
Smoke rises in Manama, Bahrain, Feb. 28, 2026, from the Iranian missile attack that was reported after the strikes of the United States and Israel against Iran. (Reuters/Stringer/Reuters)
Financial markets can also be volatile.
During the brief Iran conflict in June, the US dollar initially fell by around 1% before rallying.
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Airlines have already canceled flights to parts of the Middle East, and airline stocks could come under pressure if airspace closures increase, according to Reuters.
Reuters contributed reporting.
