Strait of Hormuz Crisis: Blockade and Escalating Tensions Raise Fears of Global Recession

Maritime traffic through the critical Strait of Hormuz has slowed to a trickle as geopolitical tensions intensify. Following reported attacks on UAE vessels, which the UAE blamed on Iran, the US announced it could maintain its naval blockade indefinitely and prepare new economic sanctions against Tehran.

Key Highlights:
- Blockade Impact: Vessel movement has dropped significantly compared to pre-war averages, with zero crude oil tankers transiting on Friday, raising global concerns over oil and LNG supplies.
- US Position: President Donald Trump warned of declaring the strait US territory, while defense and treasury officials emphasized continued military presence and unprecedented economic pressure.
- Regional Escalation: An Iranian parliamentary committee approved a bill to block vessels belonging to the US, Israel, and allied nations, alongside recent drone strikes by Houthi rebels targeting Saudi facilities.
- Economic Fallout: Economists warn that prolonged disruption could stall global economic growth and push vulnerable regions toward a recession, keeping oil prices elevated around 87 dollars per barrel for Brent crude.