economy
As Iran keeps Strait of Hormuz closed, it's also threatening to target another vital Mideast shipping lane
March 27, 2026 / 1:07 PM EDT / CBS News
TL;DR
- Iran's Revolutionary Guard Corps has closed the Strait of Hormuz, impacting approximately 20% of global crude oil supply.
- The price of crude oil has surged over $110 a barrel following the closure.
- Chinese-owned commercial vessels were warned and turned back by the IRGC Navy near Larak Island, described as Iran's 'toll booth'.
- Iran is reportedly considering making passage fees for the Strait of Hormuz official.
- There is a threat to also target the Bab el-Mandeb Strait, which handles about 10% of the world's oil supply.
- The Houthi rebel group in Yemen, an Iranian proxy, controls navigation in the Red Sea and could potentially engage in the conflict.
- Analysts warn of a potential 40% chance of oil prices reaching $200 a barrel by June.
- The UAE is pushing for a 'Hormuz Security Force' to reopen and defend the strait.
- UAE's ADNOC head called Iran's actions in the Strait of Hormuz 'economic terrorism'.