France and Italy have opened talks with Iran in an effort to secure safe passage through the Strait of Hormuz and restart Gulf energy shipments, according to the FT.
These talks come in the midst of the Middle East tensions which has brought global oil production and shipping to a standstill.
Strait of Hormuz Closure
The Strait of Hormuz is one of the most critical maritime chokepoints in the global energy system. It is a narrow waterway connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, and it sits between Iran to the north and Oman and United Arab Emirates to the south.
Roughly 20–21 million barrels of oil per day pass through the strait, representing about one-fifth of global petroleum consumption. The majority of crude oil exported by Gulf producers moves through this route.
The closure of this route in the heat of Middle East tensions has led to a massive strain on the global supply of crude oil and a hike in global oil Prices.
