Iran blocks Strait of Hormuz, causing global oil price surge

Iran has closed the Strait of Hormuz, a critical waterway for global oil shipments. This has effectively blocked the flow of oil through the channel, causing a major disruption to energy trade.

In response, global oil prices have risen sharply, trading near a 42-month high. The United States has launched a $20 billion reinsurance program to try to stabilize oil trade and announced a release of 400 million barrels from strategic petroleum reserves. Saudi Arabia has begun cutting its own oil output as storage facilities fill up.

Despite vows from President Donald Trump to ensure the "free flow of energy," shipping has not restarted in the strait. Iran has vowed to keep the waterway closed, and there are fears that Iranian mines could further slow any potential resumption of oil flow.