Hormuz Tensions Spark Fears of Oil Shock and Crypto Liquidity Crisis

The Strait of Hormuz, a critical maritime corridor between Iran and Oman, has been experiencing escalating tensions that have pushed war-risk insurance premiums sharply higher.

Roughly 20% of the world's oil supply passes through this narrow waterway daily. While no full closure has been confirmed, military activity in the region has already raised fears of supply disruption.

The implications of an oil price spike go far beyond energy markets. Higher crude prices feed directly into transportation, manufacturing, and consumer goods costs, putting upward pressure on CPI data globally.