Iranian Attacks Close Key Oil Route
Iranian attacks on tanker ships have effectively closed the Strait of Hormuz. This waterway carries one fifth of world oil.
Crude oil prices jumped 8% on March 2nd. The Middle East conflict now threatens global trade routes.
Oil traders fear a new worldwide oil shortage. The strait connects the Persian Gulf to the Gulf of Oman.
Klear Note — The Strait of Hormuz is a narrow waterway between Iran and Oman. About one-fifth of world oil passes through it daily. When this route closes, oil prices rise worldwide and affect gas prices.
Key Terms 3
- Strait of Hormuz A narrow waterway between Iran and Oman that ships use to move oil worldwide.
- Crude oil Raw oil from the ground before it is refined into gasoline and other products.
- Crude futures Contracts to buy or sell oil at a set price in the future.