Iran currently produces about 3.3 million barrels of oil per day, accounting for roughly 3% of global supply. Historically, a 1% disruption in global oil supply has pushed prices up by 3% to 5%. The Strait of Hormuz carries roughly one-fifth of global oil shipments -- close to 20 million barrels per day -- in addition to significant volumes of liquefied natural gas (LNG). Equirus notes that conflicts often add a geopolitical premium to oil prices in their early stages, before markets gradually adjust through rerouting supplies and rebalancing production. Although Iran has repeatedly threatened in the past to close the Strait of Hormuz, it has never implemented a full shutdown.

Source: Dhaka Tribune February 28, 2026 17:13 UTC