Oil prices jump as US warns ships to avoid Iran
Oil prices climbed over 1% on Monday after the US told American ships to steer clear of Iranian waters in the Strait of Hormuz and Gulf of Oman.
This move came right after Iranian forces boarded a tanker on February 3, 2026, making people nervous about possible oil supply hiccups through this super-important route.
Brent crude hits $68.94 a barrel
The US advisory pushed Brent crude up to $68.94 a barrel, with West Texas Intermediate at $64.38.
The Strait of Hormuz is basically the world's oil highway—about a fifth of global oil consumption (roughly 20 million barrels per day), so any trouble here can shake up global markets fast.
Saudi Arabia's oil exports
Saudi Arabia sends nearly 40% of the oil that moves through this strait—about 5.5 million barrels daily—and most of it heads to Asia.
China, India, Japan, and South Korea together take in almost 70% of those flows.
What if the Strait shuts down completely?
If the Strait ever shuts down completely, oil prices could skyrocket since backup pipelines only handle a fraction of what usually goes through Hormuz.
That would mean higher fuel costs and a lot more uncertainty for everyone relying on energy worldwide.