On Monday evening, Oil edged higher, and U.S. stock futures slipped after Iranian state media reported that Tehran has closed the Strait of Hormuz and warned it would fire on any vessel attempting to pass.

Dow futures were down 154 points, or 0.31%, to 48,791.00, while S&P 500 and Nasdaq futures fell 0.28% and 0.36% to 6,869.25 and 24,935.75, respectively

At the same time, WTI Crude April 26 futures gained 0.93% to trade at $71.89, while Gold COMEX April 26 futures climbed 1.05% to $5,367.50.

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The Strait of Hormuz is one of the world's most critical energy chokepoints.

Roughly one-fifth of global oil consumption — more than 20 million barrels of crude, condensate and refined fuels per day — moved through the narrow waterway last year, Reuters reported, citing data from analytics firm Vortexa.

At its narrowest point, the strait is just 21 miles wide, with shipping lanes only about 2 miles wide in each direction.

It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, making it a vital artery for energy exports.

Saudi Arabia, Iraq and the United Arab Emirates collectively shipped more than 13 million barrels of crude per day through the Strait last year, with most of those exports headed to China. The passage is also crucial for global liquefied natural gas flows.

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Iran, for its part, produced about 3.5 million barrels per day of crude and roughly 800,000 barrels per day of condensate in 2025, accounting for nearly 4% of the worldwide supply.

Qatar, one of the world's largest liquefied natural gas exporters, also sends nearly all of its LNG cargoes through the passage.

Earlier in the day, QatarEnergy suspended LNG production following military strikes that hit its facilities in Ras Laffan and Mesaieed industrial cities.

Meanwhile, President Donald Trump, in an interview with CNN, said U.S. forces have already struck Iran with significant force but cautioned that an even larger "big wave" of military action is still ahead.

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According to U.S. Central Command, six American service members had been killed in action as of 4 p.m. ET on March 2.

CENTCOM Update TAMPA, Fla. – As of 4 pm ET, March 2, six U.S. service members have been killed in action. U.S. forces recently recovered the remains of two previously unaccounted for service members from a facility that was struck during Iran's initial attacks in the region.…

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This article Iran Declares Strait Of Hormuz Closed: Oil Climbs, Dow Futures Down 154 Points As Global Supply Fears Escalate originally appeared on Benzinga.com