Prolonged Strait of Hormuz closure would cause oil prices to surge, experts warn

MoneyWatch Strait of Hormuz remains shut as Trump pushes U.S. allies to help open the key waterway. Here's what to know. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Megan Cerullo Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo Updated on: March 20, 2026 / 3:42 PM EDT / CBS News Add CBS News on Google Traffic through the Strait of Hormuz, the Persian Gulf waterway that serves as a key artery for global oil shipments, has been dramatically curtailed since the Iran war began.The passage of oil tankers and other commercial ships has all but halted in the strait, sparking concerns that a prolonged conflict in the region could constrain global oil supplies, according to economists. Crude prices, which hovered below $70 per barrel in the days before the start of military operations on Feb. 28, have soared above $100 a barrel for the first time since 2022.  "The combination of an escalating conflict (including Israeli attacks on Iranian fuel depots), the ongoing disruption of Hormuz and announcements of producer shut-ins indicates the crisis is unlikely to be resolved any time soon," energy analysts with Eurasia Group, a political risk consulting firm, said in a report earlier this month.Here's what to know about the Strait of Hormuz.What is the Strait of Hormuz?The strategic sea passage, located on Iran's southern border, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Long an important commercial trade route, the Strait of Hormuz ordinarily enables the flow of about 20% of global oil — roughly 15 million barrels of crude per day — along with liquefied natural gas shipments. Experts describe it as a strategic "choke-point" for crude.  Rough...