Oil Prices Near $100 a Barrel as Strait of Hormuz Closure Sends Shockwaves Through Global Economy

Global oil prices have surged toward $100 per barrel as Iran's near-total closure of the Strait of Hormuz — one of the world's most critical energy chokepoints — continues to disrupt oil tanker traffic and rattle financial markets worldwide.

The Strait of Hormuz carries roughly 20% of the world's oil supply. Its effective closure since the start of the US-Israel war on Iran on February 28 has sparked a global fuel crisis, with US gasoline prices rising to a 22-month high of $3.63 per gallon, according to the American Automobile Association (AAA).

Wall Street has suffered three consecutive weeks of losses. The S&P 500 is down 3.1% for the year, while the Nasdaq composite fell 0.9% in the latest trading session. Market strategists say oil prices are now the dominant driver of equity markets.

The tourism industry is also feeling the strain. Italy's travel federation estimates the conflict could cost the country at least €1.5 billion in lost tourism revenue in 2026, with losses potentially reaching €6 billion when Gulf transit hubs are factored in.

Qatar, a major liquefied natural gas supplier, was forced to temporarily suspend production after an Iranian drone struck its facilities.

Shipping companies have begun imposing war risk surcharges on vessels transiting the region. US President Donald Trump has called on allies including the United Kingdom and China to contribute naval forces to help reopen the strait.

White House economic advisor Kevin Hassett expressed optimism about a post-conflict rebound. "We expect that the global economy is going to have a big positive shock as soon as this is over," he told CBS News.