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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move that threatens global energy stability and heightens the risk of direct conflict, Iran has declared the Strait of Hormuz closed until further notice. This decision follows an attack by the Islamic Revolutionary Guard Corps (IRGC) on a container ship in the strategic waterway. In immediate response, U.S. Central Command launched military strikes against Iranian targets, marking a severe escalation in maritime tensions that have persisted for weeks.
These developments arrive at a critical juncture for oil majors, as markets closely monitor potential long-term disruptions to flows through a strait that handles approximately one-fifth of global oil consumption. Comparing this to previous crises, Goldman Sachs analysts suggest that a sustained closure could drive crude prices to record highs. Per market data, peer stocks such as Chevron (CVX) closed at $176.40, while Shell (SHEL) stood at $82.23 as of July 10, 2026.
Regarding current price levels, BP.L closed at 482.65 pence and XOM at $138.825 (close of July 10, 2026). Traders should watch for any official statements from the IEA regarding strategic reserve releases, alongside the API Crude Oil Stock Change report due on July 7, as these geopolitical tensions are expected to directly fuel energy price volatility in upcoming sessions.