The Strait of Hormuz is one of the most important water routes in the world. It is where a huge amount of the world's oil is shipped. Right now, almost nobody is using it.

Traffic has slowed to a crawl. In fact, officials in Iran say only a tiny handful of ships are passing through right now. This is happening because attacks in the Middle East have become much more frequent and dangerous.

It isn't just the attacks causing the problem. Iran is also threatening the companies that insure the ships and the groups that keep track of safety standards. To make things even worse, Iran has created a "blacklist." They have added 77 ships to this list, which basically tells them they are not allowed to move through the area safely.

Even though the United States says they are working to clear the area and keep traffic moving, the market is already reacting. Oil prices have jumped above $100 per barrel. This is happening because people are worried that the oil will get stuck or that there just won't be enough supply to go around.

Right now, the situation is very tense. Everyone is watching to see if shipping can go back to normal or if the cost of energy will keep climbing as the route remains effectively closed.

Source: Reuters