Iran holds world hostage: Iranian government poised to SHUT Strait of Hormuz closing off 20 per cent of global oil and gas

The decision to close the Strait, through which around 20 per cent of global oil and gas demand flows, could see the world thrown into disaster. Iran ‘s Supreme National Security Council must still make the final call on the matter, Iran’s Press TV said today. But lawmaker and Revolutionary Guards Commander Esmail Kosari told the Young Journalist Club that doing so is on the agenda and ‘will be done whenever necessary’. Last weekend, Kowsari told local media that closing the Strait of Hormuz ‘is under consideration, and Iran will make the best decision with determination’.

| Published June 22, 2025

Iran blocks Hormuz 2025: Iran has never blocked the Strait, amid any war or conflict. What could finally push it to this? What makes blocking the Strait of Hormuz such a potent threat? We explain the full picture, in 4 points

In a dramatic escalation following U.S. airstrikes on its nuclear facilities, Iran’s government has moved closer to a decision that could rattle the global economy—Iranian lawmakers voted to approve the potential closure of the Strait of Hormuz, a vital maritime artery through which nearly one-third of the world’s oil supply flows. The announcement has sparked widespread alarm, with energy markets on edge, world leaders calling for restraint, and military forces across the Gulf region going on high alert. The strategic Strait of Hormuz has emerged as a flashpoint following U.S. strikes on Iranian nuclear facilities and Tehran’s parliamentary vote to consider closing this vital waterway. Here’s why the move has ignited global concern:

1. A Critical Global Chokepoint

Stretching roughly 167 km and narrowing to about 33 km at its tightest part, the Strait sits between Iran to the north and Oman/UAE to the south. It serves as the only maritime exit for Persian Gulf oil tankers.

2. Massive Volume of Oil Throughput

Approximately 17–20 million barrels per day—nearly 20–30% of global oil consumption—pass through the Strait. Also critical for LNG shipments from the region.

3. Iran’s Political Gamble

On June 22, Iran’s parliament approved the possibility of closure after U.S. military attacks hit its nuclear sites. Final approval now rests with the Supreme National Security Council.

4. Potential Economic Shockwaves

• Oil prices could spike dramatically—analysts warn of potential jumps above $120–150 per barrel if the Strait is blocked.

• Inflation would surge; UK officials predict impacts on consumer prices and tax burdens , while U.S. gas prices could jump by $0.20–$1.00 per gallon.

5. Regional and Global Responses

• Military Deterrence: Iran has threatened mines, missile attacks, and naval blockades.

• Allied Countermeasures: Western powers and Gulf nations are preparing naval deployments. Analysts expect any closure would be temporary—days or weeks at most. .

• Market Reaction: Oil markets have already spiked ~10%, with Brent crude surpassing $77 per barrel.

6. Energy Security Shake‑Up

• India, which relies heavily on Hormuz-carried oil (~40% of its imports), is diversifying toward West Africa and other sources.

• Alternate Routes: Pipelines like Habshan–Fujairah in the UAE exist but carry only ~2.6 Mbpd—far short of Hormuz’s capacity.

Emergency workers attend to a building hit by a reported Iranian missile strike on Sunday in the Ramat Aviv neighborhood of Tel Aviv, Israel

Implications

1. Global Oil Disruption
   Nearly 20% of the world’s oil passes through the Strait of Hormuz. Any closure, even temporary, could trigger oil price spikes, fuel shortages, and economic instability—especially in import-dependent nations like India, Japan, and much of Europe.

2. Military Escalation
   Iran’s threat to mine or blockade the strait could provoke a swift military response from the U.S. and its allies, risking direct confrontation in a region already on edge after recent U.S. airstrikes.

3. Inflation and Economic Fallout
   A blocked strait would likely push fuel prices higher, feeding inflation across global markets. Consumers could face rising costs for transportation, food, and energy.

4. Pressure on Diplomatic Channels
   With Oman talks suspended and tempers flaring, diplomacy is at risk. A failure to re-engage diplomatically could close the window for peaceful de-escalation.

5. Energy Realignment
   Major importers like India may accelerate shifts toward alternative oil suppliers and invest in overland pipelines or strategic reserves, permanently reshaping global energy flows.

💬 Overall Takeaway:

As Iran inches closer to closing the Strait of Hormuz, the world is bracing for a potentially historic disruption in global energy flows and geopolitical stability. While the move may be intended as leverage against Western pressure, its consequences could ripple far beyond the Gulf—driving up fuel prices, stoking inflation, and heightening the risk of military conflict. Whether this is a strategic bluff or a real red line, the next steps taken by global powers will determine if the crisis cools—or ignites something far larger.

SOURCES: DAILYMAIL ONLINE – Iran holds world hostage: Iranian government poised to SHUT Strait of Hormuz closing off 20 per cent of global oil and gas

LIVEMINT – Israel-Iran War: The significance of Strait of Hormuz that Iran threatens to block after US strikes – explained

THE INDIAN EXPRESS – Iran moves to block Strait of Hormuz: What this will mean for India, Tehran, world, in 4 points

REUTERS – Iran oil doomsday in Hormuz may be more fear than reality