Iranian Parliament Approves Strait Of Hormuz Closure — What It Means For Global Oil Supply
In the wake of a dramatic escalation in hostilities, the Iranian parliament has approved a proposal to shut down the Strait of Hormuz — a crucial maritime chokepoint for global energy shipments — as a retaliatory measure following American strikes on Iran’s nuclear infrastructure.
According to Press TV, lawmakers in Tehran reached a consensus on the move during a parliamentary session on Sunday, with senior official Esmaeil Kowsari stating that the final verdict rests with the Supreme National Security Council.
“The parliament has come to the conclusion that it should close the Hormuz Strait, but the final decision lies with the Supreme National Security Council,” said Kowsari, a member of the parliament’s committee on national security and foreign policy.
Why the Strait of Hormuz Matters
The Strait of Hormuz, positioned at the mouth of the Persian Gulf, is among the most significant global energy corridors. Roughly 20 percent of the world’s oil supply — estimated at 17 to 18 million barrels per day — transits this narrow waterway. It also serves as a major export route for liquefied natural gas, particularly from Qatar, The Guardian reported.
The passage is vital not just for Iran, but also for neighbouring oil-exporting nations including Saudi Arabia, Iraq, the UAE, and Kuwait. The strait’s strategic location links the Persian Gulf to the Arabian Sea through the Gulf of Oman. At its narrowest, it measures just 33 kilometres wide, with commercial shipping lanes constrained to a mere 3 kilometres.
Analysts have long warned that any disruption in this route could trigger an immediate surge in oil prices and destabilise global energy markets. The Guardian cited forecasts suggesting that oil prices could soar by up to 80 percent in the first week alone if the strait were to be closed, due to limited alternative routes and higher transportation costs.
US Strikes Escalate Middle East Tensions
Tensions surged following US President Donald Trump’s decision to launch airstrikes targeting three Iranian nuclear sites over the weekend — a move seen as the most aggressive Western military action against Iran since the 1979 Islamic Revolution.
Iran has hinted at retaliatory actions that could include closing the strait, with The Guardian reporting that over 20 million barrels of oil and significant volumes of liquefied gas pass through the waterway each day. Despite repeated past threats, this is the first time the Iranian parliament has formally approved such a move, although implementation still requires higher-level authorisation.
Iranian Foreign Minister Seyed Abbas Araghchi warned that Washington’s actions “will have everlasting consequences,” while Supreme Leader Ayatollah Ali Khamenei declared that Israel had made a “grave mistake” and “must be punished.” Neither, however, directly addressed the Hormuz closure in their initial comments.
What Strait of Hormuz Closure Means For Global Oil Supply
The potential shutdown of the strait not only threatens Western energy security but also poses economic risks for Iran and its allies. A closure would pose significant challenges for Asian economies, particularly China, which are heavily dependent on oil and gas supplies that transit the vital maritime route. According to estimates from the US Energy Information Administration (EIA), 84% of the crude oil and 83% of the liquefied natural gas that passed through the strait last year were destined for Asian markets, CNN reported.
In the first quarter of this year alone, China — the leading importer of Iranian oil — received approximately 5.4 million barrels per day via the strait. India and South Korea followed, importing around 2.1 million and 1.7 million barrels per day, respectively. In contrast, Western consumption was far lower, with Europe importing about 500,000 barrels per day and the United States just 400,000 barrels, as per the EIA data.
On Sunday, US Secretary of State Marco Rubio urged Beijing to intervene, telling 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,” Rubio warned. “It’s economic suicide for them if they do it.”
Meanwhile, some reports suggest that supertankers have already begun rerouting to avoid the strategic waterway following the US military operation.
Union Minister Hardeep Singh Puri assured that India's fuel supply remains stable and secure. “We have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," Puri wrote on X on Sunday.
“Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens," he added.
The United States Fifth Fleet, stationed in Bahrain, is responsible for securing commercial shipping in the area and is likely to play a key role if tensions escalate further.
As the world watches closely, the Strait of Hormuz remains a focal point in the broader geopolitical standoff, as it has far-reaching consequences for global energy and security.
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