Oil prices surge and shipping is disrupted as Iran closes Strait of Hormuz

The war involving Iran has led to the closure of the Strait of Hormuz, a critical waterway for global oil shipments. This has caused a sharp spike in oil prices, hitting multi-year highs, and has forced Saudi Arabia to shut down a massive amount of its oil production.

Global shipping has been thrown into chaos, with some vessels identifying themselves as Chinese to try to avoid attacks. The crisis has made hedge funds the most bullish on oil since 2020, and Russia is positioned to gain a financial windfall from the higher prices.