How can the Strait of Hormuz be "closed?" As many have pointed out, no country “owns” the Strait of Hormuz, it's an international waterway governed by international law. But, it can still be effectively closed. Ships traveling through the Strait of Hormuz purchase war-risk insurance, which protects the shipping companies from the costs of being attacked. If insurers refuse coverage and ships stop sailing, oil flows effectively stop even if the waterway technically remains "open." We've already seen two vessels targeted near the Strait of Hormuz today, with insurance costs skyrocketing. Currently, war-risk premiums are rising by 50%+ amid the war between Iran, Israel, and the US. Insurance costs for a $100M oil tanker have jumped from ~$250,000 to ~$375,000 per voyage. Keep watching insurance costs.