Iran closes key oil shipping lane and attacks tankers, disrupting global supply

Iran has closed the Strait of Hormuz, a vital waterway for global oil shipments, and is attacking tankers and energy infrastructure in the Gulf. The country's new leader, Mojtaba Khamenei, has vowed to keep the strait shut, and Iranian forces have reportedly laid mines in the area. These actions have trapped ships and halted most oil exports from the region.

In response, the International Energy Agency (IEA) approved the largest-ever release of emergency oil reserves—400 million barrels—from member countries to try to stabilize markets. Despite this, oil prices surged above $100 a barrel, and Iran warned prices could reach $200. Analysts say the conflict is causing the largest oil supply disruption in history.

Satellite imagery showed some limited tanker movement at Iran's Kharg Island oil terminal, and reports indicate Iran is allowing some of its own oil exports to pass through the strait to China. However, the broader shipping lane remains effectively closed, with the world racing to find alternative routes and protect remaining oil flows.