Global oil markets are facing potential price shocks following Iran's announcement to close the Strait of Hormuz, a critical chokepoint for approximately one-fifth of global crude oil flow, in retaliation for air strikes by Israel and the U.S. on February 28, 2026, after the death of Ayatollah Ali Khamenei. This closure, which began impacting trade on March 2, 2026, could lead to supply delays, reduced traffic, and increased shipping costs, potentially pushing Brent Crude prices above $90 per barrel. India, heavily reliant on the Strait for about half of its crude oil and 54% of LNG imports in FY2025, faces significant cost and time escalations for its exports and a soaring import bill, impacting inflation and economic deficits. Activity in the strait has already fallen by 40-50%, with vessels fleeing, while the International Energy Association monitors the situation, noting markets have been well supplied to date.