Shutdown of Hormuz Strait raises fears of soaring oil prices

"Shipping through the strait, which carries one-fifth of the oil consumed globally as well as large quantities of gas, has ground to a near halt amid Iranian attacks on oil tankers in the region. A commander in Iran's Revolutionary Guard Corps said on Monday that the strait was closed and that any vessel attempting to pass through the waterway would be set ablaze."

"Traffic is down at least 80 percent, Michelle Bockmann, a senior maritime intelligence analyst at Windward, told Al Jazeera, adding that the shipping industry had already been grappling with a huge spike in freight costs for routes out of the Middle East and the Gulf."

"Vessel tracking service Kpler showed that limited traffic continued in the strait primarily ships flying the flag of Iran and its major trading partner China on Sunday. Bockmann said it was possible that some ships had passed through the strait after switching off their Automatic Identification System to avoid detection."

Escalating conflict between the United States, Israel, and Iran has disrupted critical shipping lanes in the Strait of Hormuz, a vital global energy chokepoint carrying one-fifth of worldwide oil consumption. Iranian attacks on oil tankers and threats to close the strait have caused shipping traffic to decline by at least 80 percent, with approximately 150 ships stranded in the region. At least five tankers have been damaged and two personnel killed. Oil prices surged to $79.40 per barrel following joint US-Israeli attacks on Iran. Maritime analysts indicate that while consumers face higher prices, some vessels continue passing through by switching off tracking systems or flying Iranian and Chinese flags. The disruption compounds existing freight cost increases for Middle Eastern and Gulf shipping routes.

Read at www.aljazeera.com