As military hostilities keep worsening between Iran and Israel, Tehran is threatening to close the Strait of Hormuz. The strategic waterway is the ‘world’s most important oil transit chokepoint’ — rou

Peter Tirschwell from S&P Global Market Intelligence discusses the potential disruption to global shipping as a result of escalating conflict between Israel and Iran.

The number of container vessels slowing down at the Strait of Hormuz is more than three times the normal level, said Ami Daniel, chief executive of artificial intelligence company Windward, amid fears that shipping may be targeted during the conflict between Iran and Israel.

“Closing the Strait of Hormuz or attacking energy infrastructure in the region will spike energy prices, turn all their neighbours into adversaries and more likely than not draw the US military, which has a large presence in the region, into the conflict,” he said.

India is a net importer of crude oil, with over 40 percent of its supplies sourced from Middle East nations such as Iraq, Saudi Arabia, the United Arab Emirates, Kuwait and Qatar. These countries export crude oil and LNG to India through the Strait of Hormuz route.

Israel's air strikes on Iran are unlikely to cause a major disruption to oil supply, and market analysts believe a full-scale shutoff of oil flows by closing the Strait of Hormuz is unlikely

Crude oil prices dip as Israel-Iran conflict spares supply lines; traders monitor Strait of Hormuz and OPEC output for further oil outlook clues.

The UK sent jets and air tankers amid fears Iran will blockade Strait of Hormuz and spark massive oil price hikes.