es even higher. The strait handles roughly a fifth of the world’s daily oil shipments, making it one of the most strategically sensitive chokepoints in global trade. Tankers carrying crude oil and liquefied natural gas from countries such as Saudi Arabia, Iraq, the United Arab Emirates and Kuwait must pass through the route to reach markets in Asia, Europe and beyond. Shipping companies have reportedly begun reassessing routes and security measures as insurers evaluate potential risk premiums for vessels operating in the region. Energy traders say the uncertainty alone is enough to trigger volatility in commodity markets. Meanwhile, governments and international organizations are closely monitoring the situation. The International Energy Agency has indicated that strategic petroleum reserves could be used if supply disruptions begin to threaten global energy stability. Energy economists caution that the situation highlights the world’s continued dependence on a small number of vulnerable maritime corridors. Even the perception of risk in the Strait of Hormuz they say, can ripple across global markets, affecting fuel prices, inflation and economic growth worldwide. As tensions remain unresolved, investors and policymakers alike are watching the region closely, aware that developments in this narrow waterway could have far-reaching consequences for the global economy. Source: The Guardian