Iran closes key Strait of Hormuz shipping route after ayatollah threatens to sink US warships - The strategic waterway has not been shut since the 1980s. The move comes amid ongoing tensions with the

Iran's threat to close the Strait of Hormuz has halted shipments, raised oil prices and increased risks of global supply delays.

It was the first time Iran has announced the closure of the key international waterway, through which 20% of the world's oil passes, since the U.S. began threatening Iran and rushing military assets to the region.

The live-fire naval drills are a signal from Iran of the potential fallout to the world economy if the US goes through with threats to attack it, as tensions mount between the two countries.

The Iran war is renewing concerns about the strategically vital Strait of Hormuz. A prolonged closure could sharply drive up oil prices, experts said.

Oil prices jumped as the widening conflict in Iran disrupted tanker traffic through the Strait of Hormuz. Here's a closer look at the vital trade route. (AP Photo)

Attacks by the U.S. and Israel on Iran, and Iranian missile and drone attacks on neighboring countries, have disrupted oil and gas supplies to the rest of the world — and dealt an energy price

The average price for a gallon of gasoline jumped 11 cents overnight to about $3.11 in the U.S., according to motor club AAA. Gas prices were already rising before the U.S. launched strikes on Iran as refiners switch over to summer blends of fuel,

The widening war in Iran has ground tanker traffic through the Strait of Hormuz to a halt and oil prices have soared, highlighting the important role the narrow passageway plays in global energy supply.