Iran’s Parliament Pounces on Possible Strait Closure After U.S. Blows
Next to the sparks lit by the U.S. overnight raids on Iranian nuclear sites, Tehran’s lawmakers have taken a firm stance: the Strait of Hormuz might be shut down if the situation escalates.
What’s the Deal?
- Parliament’s Vote – The lawmakers have officially signalled support for a potential blockade.
- Final Say – The Supreme National Security Council will give the green light when it’s deemed “necessary.”
- Revolutionary Guards Commander Esmail Kosari declared to the Young Journalist Club that the closure is “on the agenda” and will be enacted whenever the power decides.
What the Navy Is Saying
Retired Indian Navy spokesman Captain D K Sharma cautioned that rushing to block the Strait could throw a wrench into global logistics, causing insurance costs to sky‑rocket and freight routes to become pricier.
Oil Prices and Investor Panic
When tensions grow, oil prices typically go full‑on roller coaster. Sharma predicts a rough climb to:
- $80–$90 per barrel,
- or even $100 if Iran hits back.
Such high prices often push investors toward safer assets—gold, silver, or even those old, dusty safe‑houses.
Bottom Line
Iran’s timers are ticking. If the Strait gets shut, the ripple effects will feel like a tidal wave—affecting logistics, insurance, and the entire oil market. Watch for the Supreme National Security Council’s final thumbs‑up.
Iran warns ‘every American is a target’ and US bases in the Middle East are a ‘point of vulnerability’
US B-2 stealth bombers obliterate Iran’s nuclear sites using ‘bunker busters’ and 30 tomahawk missiles
deVere Group warns markets will drop quickly if the US enters Israel-Iran
What Happens If the Strait of Hormuz Gets Blocked? A Rough Road to Higher Prices
Picture the world’s oil supply as an enormous, leaky boat. About a quarter of all the seaborne oil that makes its way around the globe in 2024–2025 passes through the Strait of Hormuz. Even more—roughly one‑fifth of the planet’s oil consumption and LNG trade—depends on this tiny slice of water. If Iran, or anyone else, blocks that passage, the ripple effect will hit everyone from grocery aisles to gas stations.
Why the Strait is a “Must‑Pass” for Oil and LNG
- Saudi Aramco runs a 5 million‑barrel‑per‑day pipeline from the Abqaiq oilplant to the Yanbu port on the Red Sea.
- The UAE’s 1.8 million‑b/d pipeline links onshore fields to the Fujairah terminal in the Gulf of Oman.
- In 2024, about 20 million barrels a day of oil was shipped through the Strait.
Almost all of that cargo heads east to Asian heavyweights. In 2024, 84 % of the oil and condensate and 83 % of LNG traveling through the Strait went to Asia. China, India, Japan and South Korea together scooped up 69 % of that flow, proving how vital that corridor is.
What Happens When the Strait Is Blocked?
Cutting off the Strait is like slamming the brake on a runaway tractor. Oil prices will shoot up, you’ll see the same effect in commodity, food, fuel and other energy prices, and the world will feel the knock‑on pains. It’s not just a story about a single conflict—it’s about our entire economies being permanently keen on a forbidden tight‑rope.
In Short
If the Strait of Hormuz is shut, the price game will change dramatically, and the global economy will have to brace itself for higher costs and supply headaches across the board.
