The Key to the World’s Energy Lifeline: Who Will Claim It?

PUKMEDIA

The Strait of Hormuz.

Several oil tankers successfully transited the Strait of Hormuz on Tuesday, amid reports that Iran has permitted vessels from Gulf states to pass onwards to Europe and India. This arrangement is said to come in exchange for a fee of approximately $2 million.

Observers suggest that US President Donald Trump approached Iran primarily as a military adversary, overlooking its strategic leverage over one of the world’s most critical economic arteries: the Strait of Hormuz. As a result, the conflict has evolved beyond aerial warfare into a broader struggle centred on maritime energy routes.

At present, around 400 vessels are waiting near the Strait, while only about 60 are granted passage each day, highlighting the growing bottleneck in global shipping.

According to reports, a large oil tanker carrying roughly two million barrels of crude is required to pay around $2 million—reportedly in Chinese yuan—for safe passage. This equates to approximately $1 per barrel. Once payment is made, Iran’s Revolutionary Guards issue an authorisation code along with navigational instructions. As vessels approach, communication is maintained via radio systems, including VHF, while Automatic Identification Systems (AIS) are actively managed.

Despite the ongoing conflict, Iranian crude exports continue at pre-war levels, estimated between 1.1 and 1.5 million barrels per day. Much of this supply is directed towards China, particularly following the easing of US sanctions on Tehran’s oil sector.

Iran’s influence over global energy markets appears to be intensifying. Notably, the Federal Reserve refrained from cutting interest rates at its most recent meeting, citing inflationary pressures linked to disruptions in the Strait. This has contributed to a reported increase in energy costs for American consumers of at least 50%.

Meanwhile, fourteen countries—including Egypt and South Korea—have raised fuel prices in direct response to the US-Israeli-Iranian conflict. The widening economic impact has prompted Trump to signal interest in a potential joint administration of the Strait of Hormuz with Iran, as concerns grow across Europe and even within the United States.

Now in its fourth week, the conflict’s toll is no longer measured solely in battlefield casualties. Instead, the decisive factor appears to be control over energy corridors. Ultimately, the outcome may hinge on who commands the flow of resources—and, by extension, the direction of global inflation.



PUKMEDIA