Russia Warns of Global Oil Risks After Hormuz Closure
Russia warned of oil market imbalances after the closure of the Strait of Hormuz. Moscow condemned the killing of Iranian leaders and urged de-escalation.
The foreign ministry of Russia warned on Sunday that the closure of the Strait of Hormuz to shipping could lead to significant imbalances in global oil and gas markets. Trading sources reported on Saturday that several tanker owners, oil majors, and trading houses have suspended shipments of Brent Crude Oil, fuel, and liquefied natural gas through the strait following military actions by the United States and Israel against Iran. In response to the attacks, Tehran announced that navigation through the waterway had been closed.
The Strait of Hormuz is a critical artery for global energy, with approximately 20% of the world's oil passing through it. This includes production from Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait. Additionally, the route is essential for large volumes of liquefied natural gas exported by Qatar.
