Iran's Revolutionary Guard has declared a de facto closure of the Strait of Hormuz, threatening to fire on vessels and prompting global insurance companies to cancel coverage for oil shipments. This alarming escalation raises significant concerns over potential disruptions to the supply of over 20 million barrels of oil per day, which could trigger skyrocketing oil prices and inflation worldwide, impacting economies heavily reliant on oil from the region, particularly in Asia. As tensions mount, the US Navy is struggling with operational limitations in the Gulf, while the cost of war risk insurance has surged dramatically, further complicating shipping logistics and threatening maritime trade stability.