The closure of the Strait of Hormuz pushed up oil and gasoline prices. The waterway links the Persian Gulf to world markets, and roughly 20% of global oil and liquefied natural gas normally flows through it.
Early signs are visible. Jet fuel is tightening and diesel prices are rising across Asia. China ordered refineries to stop exporting fuel, creating shortages that raised shipping costs for US imports such as consumer electronics and pharmaceuticals. Naphtha, a feedstock used to make plastics, also moves through the strait in large volumes.
Fertilizer production uses natural gas, and Persian Gulf states supply a large share of world urea and sulfur exports. Experts warn that some effects will appear in six to 12 months as lower crop yields and higher food prices.
Difficult words
- closure — an act of closing a road or route
- waterway — a channel of water used for ships
- export — to send goods to another countryexporting
- shortage — a lack of something people needshortages
- feedstock — a raw material for making other products
- fertilizer — a chemical added to soil to help plants
- yield — the amount of crop produced by landyields
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- How could higher fuel and diesel prices affect your daily life?
- If food prices rise in six to 12 months, how might you change your shopping or meals?
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