Iran conflict closes Strait of Hormuz, disrupting global oil and trade

A conflict involving Iran has led to the closure of the Strait of Hormuz, a critical waterway for global oil shipments. Ship traffic through the strait has reportedly fallen by 94%, and major insurers in London have stopped providing coverage for vessels in the area.

This closure has caused significant disruptions to global energy markets and trade. Oil prices have risen, while stock markets in Asia and the US have fallen. The disruption is affecting economies across Asia, with Thailand and Indonesia's petrochemical industry facing particular strain. Dubai's business model, which relies heavily on trade, has also been impacted.

The situation has triggered a "force majeure" declaration by at least one major Indonesian petrochemical company, citing the war as an event beyond its control. Trading in South Korea's KOSPI 200 futures was temporarily halted after a sharp drop.