JOHANNESBURG - The conflict in the Middle East has a ripple effect on various sectors.
The price of oil is expected to rise sharply.
This follows the decision by Iran's Revolutionary Guards to close the Strait of Hormuz earlier today.
According to Iranian State TV the Revolutionary Guard has contacted ships in the strait, informing them of the closure of the key shipping channel.
Nearly a quarter of the world's seaborne oil supplies are routed through the strait.
However, key Opec members have announced a greater-than-expected increase to production, in an apparent bid to avoid the expected price hikes.
Market analysts remain cautious.
They claim an extra 206,000 barrels per day will do very little to ease the market if oil can't move through the Strait of Hormuz.
In the world of shipping, the world's largest container shipping company has suspended all vessel crossings at the Strait of Hormuz in the Middle East.
Maersk won't be sending its vessels through the narrow strait as Iran continues to fire retaliatory missiles into Israel and the Gulf.
The shipping giant made the announcement after Iran’s Revolutionary Guards declared the strait closed.
Maersk said crews, vessels and customer cargo are a priority it will protect until further notice.