Hormuz Blockade Slams Oil Prices as Iran Turns to Crypto for Sanctions Bypass

The Strait of Hormuz has been closed again by Iran's Islamic Revolutionary Guard Corps (IRGC), severely disrupting shipping traffic. The closure, which lasted from June 19-20, resulted in a significant decrease in commercial shipping through the passage, with transit volumes occasionally dipping below 10% of pre-conflict levels.

The IRGC claimed that the closure was due to Israeli attacks on southern Lebanon, which they said violated a 60-day ceasefire. This follows months of escalating hostilities between Iran and its adversaries, starting with US and Israeli strikes on February 28.

Tanker companies have been rerouting their vessels around the Cape of Good Hope or sitting idle while waiting for clarity on the situation. The closure has resulted in a significant increase in shipping costs and transit times, as tankers now need to travel an additional weeks to reach their destinations.