Iran has announced the closure of the Strait of Hormuz and warned it will open fire on any vessels attempting to pass through, triggering sharp volatility in global energy markets.
According to Reuters, citing Iranian media reports, senior commanders of Iran’s Islamic Revolutionary Guard Corps confirmed the strait has been shut, with the Revolutionary Guard and navy set to take military action to block maritime traffic.
The Strait of Hormuz, located south of Iran, is one of the world’s most critical oil transit chokepoints, accounting for roughly one-fifth of global daily oil and gas shipments. The waterway connects the Persian Gulf with the Gulf of Oman, and energy exports from several major oil-producing nations pass through it. The disruption has fuelled concerns over supply shortages, sending international oil prices sharply higher.
Escalating tensions in the Middle East have also affected Australia’s energy market. Domestic petrol prices have risen to a 19-month high, with E10 fuel exceeding A$2 per litre in some cities. The Treasurer has directed the Australian Competition and Consumer Commission (ACCC) to monitor price movements to prevent opportunistic increases. The Energy Minister has met with refiners to ensure supply stability and urged the public to avoid panic buying.
Analysts warn that a prolonged closure of the strait could lead to further instability in global energy and shipping markets. The government is also assisting Australian citizens stranded in the Middle East to evacuate and is closely monitoring military developments in the region.