For the first time, Iran’s parliament has greenlit a proposal to shut down the Strait of Hormuz, a critical oil chokepoint. The final decision now rests with the Supreme National Security Council, according to Iran’s Press TV (June 22).
This dramatic escalation follows a series of U.S. military strikes on Iranian targets, which has significantly raised the risk of Iranian retaliation. Among Tehran’s many options, none has drawn as much international concern as the potential closure of the Strait.
In a cautious statement, Foreign Minister Seyed Abbas Aragchi hinted at Iran’s intent, stating that “multiple options are on the table.”
READ MORE: 5 Key Iranian Regime Institutions Targeted by Israel in Recent Strikes
In the U.S., Secretary of State Marco Rubio urged China to dissuade Tehran, warning on Fox News that blocking the Strait would be “economic suicide” and devastate global trade — especially in oil.
Let’s explore why this narrow strip of sea holds the power to shake global markets in four vital points:
1. What Exactly is the Strait of Hormuz?
The Strait of Hormuz is a narrow maritime passage connecting the Persian Gulf to the Gulf of Oman, which flows into the Arabian Sea. It is flanked by Iran and Oman and serves as the only sea route for Persian Gulf oil producers — including Saudi Arabia, Iran, Iraq, UAE, and Kuwait — to reach global markets.
At its narrowest, the strait spans just 33 kilometers, with only 3 km-wide shipping lanes in each direction. This makes it a strategic bottleneck — easy to disrupt, difficult to defend, and impossible to replace quickly.
2. Why is It So Crucial for the World?
In one word: Oil.
As per the U.S. Energy Information Administration (EIA), in 2024 and early 2025, over 25% of the world’s seaborne oil and about 20% of total global oil and petroleum product consumption moved through the Strait. Additionally, 20% of global liquefied natural gas (LNG) exports, mainly from Qatar, also flowed through this route.
There’s no immediate maritime alternative. Disruptions here mean skyrocketing oil prices, insurance costs, and shipping delays.
Yes, countries like Saudi Arabia and the UAE have land pipelines bypassing Hormuz — but these alternatives handle just a fraction of the Strait’s capacity. For example:
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Saudi’s East-West Pipeline handles 5 million barrels/day to the Red Sea.
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UAE’s Habshan-Fujairah pipeline handles 1.8 million barrels/day.
In contrast, Hormuz saw flows of 20 million barrels per day in 2024.
3. Will Iran Actually Shut Down the Strait?
So far, Iran has never resorted to closing the strait — not even during the brutal Iran-Iraq War in the 1980s, where both countries attacked passing ships but didn’t halt maritime trade.
Why the restraint?
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Mutual Dependency: Iran itself relies on the strait for crude exports and imports.
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China Factor: With Western sanctions, China is Iran’s biggest oil customer, buying discounted crude. Closing the Strait would disrupt this.
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Regional Diplomacy: Iran has been mending ties with Saudi Arabia and other neighbors. A blockade could reverse that goodwill.
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US Military Presence: The US Navy’s 5th Fleet, based in Bahrain, can respond rapidly. But even temporary disruptions would cause widespread chaos.
Yet, with the US already involved militarily, one of the strongest deterrents — fear of US retaliation — may now have diminished.
4. What Could This Mean for India?
India imports over 80% of its crude oil, and a large portion passes through Hormuz. The EIA reports that India, China, Japan, and South Korea together received nearly 69% of all oil shipped through the Strait in 2024.
So while India has diversified its oil sources — buying from Russia, the US, Latin America, and Africa — the immediate risk is price volatility, not supply shortage.
Higher oil prices could:
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Worsen inflation
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Push up transport and manufacturing costs
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Strain the Indian economy and foreign exchange reserves
Conclusion: The World Watches Closely
If Iran does move to block the Strait of Hormuz, the effects will ripple far beyond the Middle East. From gas stations in Mumbai to power plants in Tokyo, the global economy stands vulnerable.
For now, the world waits as diplomacy, deterrence, and regional tensions hang in a delicate balance.
