The Iranian parliament has voted to close the Strait of Hormuz in response to the recent US airstrikes that targeted three of Iran’s nuclear facilities. The Strait of Hormuz is one of the world’s most vital maritime chokepoints, and its closure would have grave economic and geopolitical consequences.
Roughly one-fifth of the world’s oil and gas supply transits through the Strait of Hormuz. This narrow channel links the Persian Gulf to the Arabian Sea and the Indian Ocean. At its tightest point, the strait is just 33 kilometres wide, with a shipping lane only three kilometres across. The waterway lies between Iran and the Arabian Peninsula and is critical for the export of oil from countries such as Saudi Arabia, Iraq, the UAE, Qatar, Iran, and Kuwait. If Iran goes ahead with the closure, not just the US and Europe, but much of Asia, including major economies like India and China, would be plunged into an energy crisis. Ships would be forced to seek alternative, longer routes, resulting in soaring transportation and fuel costs globally.
India, like China, has a significant stake in the Strait of Hormuz. Out of its total daily crude oil import of 5.5 million barrels, nearly 2 million barrels come through this strategic waterway. Economists have warned that Iran’s decision could cause a sharp rise in international oil prices. If Iran blocks the passage of oil tankers heading to Europe, the crisis will likely escalate further.
Currently, reports suggest that around 50 large oil tankers are attempting to pass through the Strait of Hormuz. Industry insiders caution that the closure could happen at any moment, pushing oil prices to unprecedented levels.
The Strait of Hormuz has served as the world’s most crucial energy corridor for over half a century. According to the US Energy Information Administration, between 20 to 21 million barrels of oil, roughly 20 per cent of global daily consumption, flow through this route each day. It is also a major transit point for liquefied natural gas (LNG), particularly from Qatar. Any disruption here would not only rattle Middle Eastern markets but also shake the global energy system.
However, Iran’s move to block the strait could also backfire. Approximately 90% of Iran’s own oil exports pass through Hormuz. A shutdown would therefore deal a severe blow to its already struggling economy, which is under heavy international sanctions. This self-inflicted economic pressure could deepen Iran’s isolation on the world stage.
Meanwhile, the presence of the US Navy’s Fifth Fleet, headquartered in Bahrain, adds another layer of volatility. Should Iran escalate further, the region could spiral into deeper military and economic chaos.
