20% of Global Oil at Risk as Hormuz Blockade Halts Ships; Crude Surges 36% in a Week of Iran–Israel Conflict

Global energy markets are facing a major shock as disruptions in the Strait of Hormuz threaten nearly 20% of the world’s oil supply amid the escalating Iran–Israel conflict. The strategic waterway, one of the most important energy chokepoints globally, carries a significant share of global crude and liquefied natural gas shipments. :contentReference[oaicite:0]{index=0}

Reports indicate that tanker traffic through the strait has slowed dramatically after warnings from Iranian forces and rising security risks in the region. More than 200 ships are currently stranded inside the Persian Gulf, while over 150 vessels remain outside waiting for safe passage. Shipping companies and insurers are reassessing risks, causing delays in crude shipments. :contentReference[oaicite:1]{index=1}

The disruption has sent shockwaves through global oil markets. US benchmark West Texas Intermediate (WTI) crude has surged roughly 36% in a single week, climbing to around $91 per barrel—one of the largest weekly gains in decades driven by geopolitical tensions. :contentReference[oaicite:2]{index=2}

Energy analysts warn that prolonged disruption to the Strait of Hormuz could significantly tighten global supply. The narrow maritime corridor normally transports around one-fifth of global oil consumption, making it one of the most critical routes for energy trade worldwide. :contentReference[oaicite:3]{index=3}

The crisis poses particular risks for Asian economies such as India, China, Japan and South Korea, which depend heavily on Middle Eastern oil imports. Higher shipping costs, insurance premiums and delays could push up fuel prices and add pressure to inflation across many countries. :contentReference[oaicite:4]{index=4}

Governments and energy markets are closely monitoring the situation as the conflict continues to unfold. Analysts say that if the blockade persists, global energy prices could remain volatile and potentially climb further, with serious implications for economic growth and global trade.