President Donald Trump addresses the American people after the US and Israeli attacks on Iran.
Iran has reportedly taken steps to restrict navigation along the world’s most critical oil export route after major US and Israeli attacks, fueling fears of significant disruption to global energy markets.
An official of a European Union naval mission told Reuters that ships in the region receive marine radio warnings from the Iranian Revolutionary Guards, instructing ships not to pass through the Strait of Hormuz.
Iran has not formally confirmed the order.
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In response to escalating tensions, several oil companies and trading firms have halted shipments of crude oil and fuel through the waterway, Reuters reported, citing trade sources.
The development follows large-scale attacks launched on Iran by the US and Israel on Saturday.
An aerial view of the port of Fujairah, United Arab Emirates, in the Strait of Hormuz, on December 10, 2023. (Reuters/Stringer/Reuters)
Roughly 20% of global oil supplies pass through the Strait of Hormuz, a narrow but strategically vital channel connecting Gulf producers to global markets.
Major exporters, including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran, are highly dependent on the route.
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Any sustained disruption could cause energy prices to rise sharply.
Brent crude, one of the key global oil price benchmarks, settled at around $73 a barrel on Friday, but analysts warn prices could rise as markets reopen.
Smoke rises from a burning building hit by an Iranian drone strike after Israel and the US launched attacks on Iran in Seef district, Manama, Bahrain, February 28, 2026. (Reuters/Stringer/Reuters)
“If the conflict continues on Sunday, oil prices are likely to respond with a rise of $5 to $10 above the current baseline of $73, based on Iran’s claim to have closed the Strait of Hormuz and the disruption of tanker traffic,” energy analysts at the Eurasia Group told Reuters.
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Barclays analysts issued an even starker warning.
“Oil markets may face their worst fears on Monday,” Barclays analysts told Reuters. “As things stand now, we think Brent can reach $100 [per barrel]as the market grapples with the threat of a potential supply disruption amid a spiraling security situation the Middle East.”
Smoke rises in Manama, Bahrain, February 28, 2026, due to reported Iranian missile strikes following attacks by the United States and Israel against Iran. (Reuters/Stringer/Reuters)
Currency markets can also experience volatility.
During the brief Iran conflict in June, the US dollar initially fell about 1% before recovering.
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Airlines have already done that flights canceled across parts of the Middle East, and aviation supplies could come under further pressure if airspace closures spread, according to Reuters.
Reuters contributed to the reporting.
