Shipping traffic through the Strait of Hormuz has plummeted after the United States and Israeli attacks on Iran. A US media report says volume has dropped by 70 percent, as concerns rise about the impact on energy.
The strait, located off Iran’s southern coast, is often described as the world’s most important energy transport route. Roughly 20 percent of global oil supplies pass through it.
Iranian media say the waterway is practically closed, and that the passage of most ships — including oil tankers — has been halted.
Japan imports more than 90 percent of its crude oil from the Middle East. A Japanese economist says the impact could be contained for a short period due to oil reserves, but a longer closure could lead to higher prices.
Akuta Tomomichi, Senior Economist at Mitsubishi UFJ Research and Consulting, said: “If it becomes prolonged, prices for gasoline, diesel fuel, and kerosene would of course rise. I think it could spill over into electricity and gas bills. Higher costs for agriculture and fisheries could push up the prices of fresh food.”
Akuta says crude oil prices — currently in the 67-dollar-per-barrel range — could rise by more than 20 dollars.
