Canada: Middle East Conflict

Middle East conflict rattled global energy market. Following joint airstrikes by the United States and Israel, Iran closed the Strait of Hormuz in early March, halting tanker traffic through the passage. The strait is one of the world’s most critical oil transit chokepoints, carrying roughly 20 per cent of global supply from major Gulf producers to Asia. The disruption — compounded by Iran’s attacks on regional oil infrastructure and Gulf Arab nations’ subsequent production cuts — sent oil prices sharply higher over the past week. While prices reversed lower on March 9 after the U.S. signalled the conflict could be nearing an end, uncertainty remains elevated, leaving the severity and duration of the disruption unclear.