Blow to the Global Economy.. Hormuz Strait Completely Closed

The Iranian government took a strategic decision to fully close the Hormuz Strait responding to American punitive measures. This strait is the most important artery for a third of global seaborne oil production towards markets. This step reflects a real collapse of recently reached truce efforts sponsored by international and regional parties. Tehran announced the strait won't witness any commercial ship passage until the blockade on its ports is lifted. Global stock markets recorded a sharp decline immediately after the news, driven by fears of energy shortages. Marine shipping insurance prices rose by astronomical percentages, warning of global inflation affecting all basic commodities worldwide. European capitals called for restraint, expressing fear of the crisis slipping into an uncontrollable military confrontation soon. Washington and its allies are working on finding alternative routes and safe corridors to ensure oil flow. This escalation puts global economic security at stake, highlighting the international trade system's fragility before geopolitical conflicts. The continuation of this closure for weeks could lead to a global economic recession resembling past crises.