Iran’s parliament has approved a plan to close one of the world’s most important trade routes, the Strait of Hormuz, where more than 20% of global oil passes every day. This decision was made after US President Donald Trump launched airstrikes on three of Iran’s nuclear sites, raising fears of a bigger conflict in the Middle East.
With the US joining Israel in its largest military move against Iran since 1979, the world now waits to see how Iran will respond.
What Is the Strait of Hormuz?
The Strait of Hormuz is one of the world’s most important oil passages. It is crucial not only for the United States but for the entire global economy, which depends heavily on oil flowing through it.
Between Oman and Iran, this narrow waterway connects the Arabian Sea in the south with the Gulf of Oman in the north. The Strait, which is 33 kilometres wide at its narrowest point and with shipping lanes that are barely 3 kilometres wide in either direction, is extremely vulnerable during times of conflict.
Why Is It So Important?
About one-fifth of the world’s oil passes through the Strait of Hormuz. Since early 2022, between 17.8 and 20.8 million barrels of crude oil, condensate, and fuels have moved through it daily, according to Vortexa.
OPEC countries like Saudi Arabia, Iran, the UAE, Kuwait, and Iraq send most of their oil through this route. Their main buyers are in Asia. The US Navy’s Fifth Fleet, based in Bahrain, protects the ships passing through this vital waterway.
How Would The Closure Affect the Global Economy?
If Iran closes the Strait of Hormuz, oil prices would spike immediately. This would trigger inflation in the US and worldwide. Rising fuel costs would quickly put pressure on President Trump, as consumers would feel the impact right away.
However, closing the Strait would also hurt Iran. It relies on the same route to export its own oil. Gulf Arab countries, already angry over Israel’s military actions, might see this as a threat and act to protect their interests. This could lead to a wider conflict.
China, which buys almost 90% of Iran’s oil, would also suffer. US Secretary of State Marco Rubio urged China to intervene. He told Fox News: “I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Strait of Hormuz for their oil. If they do that, it will be another terrible mistake. It’s economic suicide for them if they do it.”
Reports already suggest that some large oil tankers have turned back to avoid the risky waterway after the US strikes.
What Has Iran Said About the Strait of Hormuz?
Iranian state media, Press TV, reported that parliament approved the closure of the Strait, but the final decision rests with Iran’s top leaders. Foreign Minister Seyed Abbas Araghchi warned that Trump’s decision to attack “will have everlasting consequences.” Supreme Leader Ayatollah Ali Khamenei said that Israel had made a “grave mistake” and “must be punished,” though he did not mention the Strait directly.