Strait of Hormuz

The Strait of Hormuz is a crucial waterway linking the Persian Gulf and the Arabian Sea and carries a significant share of global crude oil and liquefied natural gas shipments. Recent tensions between the United States and Iran have repeatedly escalated, with Iran revoking a shipping agreement, laying mines and launching missile attacks, while the U.S. military has carried out airstrikes on Iran and imposed a naval blockade. Attacks on oil tankers have also driven international oil prices higher. The situation is affecting energy supplies, shipping security and inflation expectations, with spillovers into U.S. equities, Bitcoin and other risk assets, making it important to monitor.