A second vital waterway could go dark for global energy markets within days.
Iran’s Revolutionary Guard says it may shut down every export route that benefits the US and its allies, not just the Strait of Hormuz. The warning lands hours after Washington launched a new round of strikes and Tehran vowed the strait will stay closed until, in its words, America’s “evils” end.
Key Details
- Iran’s IRGC says regional energy exports will be “shared by all, or denied to all.”
- The Strait of Hormuz remains closed; before February’s war, it carried roughly a fifth of global oil and gas shipments daily.
- Iran-aligned Houthi forces in Yemen are signaling they could shut the Bab el-Mandeb Strait too, a chokepoint linking the Red Sea to the Gulf of Aden.
- A senior Houthi official said closing it could push oil toward $200 a barrel.
- The US says Iran struck seven commercial ships in the past week, killing, injuring, or leaving nearly a dozen crew members missing.
- Iran claims it hit US facilities in Bahrain, Kuwait, and Jordan; Jordan shot down three incoming ballistic missiles.
Market Reaction
Oil climbed again on Wednesday after Brent and WTI both closed on Tuesday at their highest levels in a month. Traders are pricing in a real risk that two major energy corridors will close at once.
A second blocked chokepoint would squeeze supply routes that traders have relied on for decades, adding fresh volatility to oil and, by extension, currencies and equities tied to energy costs.
What to Watch
Trump says he’ll eventually target Iranian energy infrastructure, though he’s holding that back for now. Any move toward the Bab el-Mandeb Strait, or a genuine return to talks, will likely be the next big swing factor for oil prices.
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Source: Reuters
