Iran’s Majlis approves Strait of Hormuz closure: global oil supply faces crisis

Following US strikes on its nuclear sites, Iran’s parliament has officially approved closing the Strait of Hormuz, a critical route for 20 million barrels of oil daily. This move threatens to disrupt nearly 20% of global oil shipments, potentially pushing Brent crude prices above $80 and severely impacting energy security for countries like India, which relies on the Strait for over two-thirds of its oil imports.

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MintLivemintNdtv+2
Updated 3m ago
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Sources: LivemintMintThehindu+2
Iran's parliament, the Majlis, has approved a proposal to close the Strait of Hormuz, a vital maritime chokepoint through which nearly 20 million barrels of oil flow daily. This move follows recent US military strikes on Iranian nuclear facilities and could severely disrupt global energy supplies.

The Strait of Hormuz links the Persian Gulf to the Gulf of Oman and the Arabian Sea, serving as a critical transit route for about 20% of the world's oil and gas shipments. For countries like India, which imports about 80% of its oil and relies on the strait for nearly 2 million barrels per day, the closure could trigger significant inflation and supply chain disruptions.

Brent crude prices have already surged over 10% since June 13, climbing above $77 a barrel, with analysts predicting prices could reach $80 per barrel amid rising geopolitical risks. The situation recalls the 1980s 'Tanker Wars' during the Iran-Iraq conflict, when oil tankers were targeted in the Gulf.

Iran’s Supreme National Security Council must still make the final decision, but Revolutionary Guards Commander Esmail Kosari emphasized the closure "will be done whenever necessary." Experts warn that while Iran could disrupt maritime traffic temporarily, it risks harming its allies more than its adversaries.

The Council on Foreign Relations notes the US maintains a significant military presence in the region, with about 40,000 troops stationed across 19 sites. Analysts suggest Iran might resort to asymmetric tactics, including terrorism or cyberattacks, to retaliate against US and Israeli actions.

This escalating crisis threatens to destabilize the global oil market and intensify regional conflict, with far-reaching economic and geopolitical consequences.
Sources: LivemintMintNdtv
Iran’s Majlis has approved a proposal to close the Strait of Hormuz, a critical chokepoint for nearly 20% of global oil shipments, escalating tensions after US strikes on Iranian nuclear sites. The move risks disrupting energy supplies and driving oil prices above $80 per barrel amid fears of a regional crisis.
Section 1 background
The Headline

Iran approves Strait closure amid rising oil prices

Key Facts
  • US military strikes targeted Iran's nuclear facilities, escalating regional tensions and prompting Iran to consider a strong response.Ndtv
  • Iran's Supreme National Security Council is weighing closing the Strait of Hormuz as a direct response to the US strikes on its nuclear sites.
  • Iran's Parliament, the Majlis, has officially approved the closure of the Strait of Hormuz, marking a significant escalation in the regional energy crisis.Livemint
  • Brent crude prices surged more than 10% since June 13, climbing above $77 a barrel amid rising geopolitical risk linked to the Strait of Hormuz tensions.Mint
  • Experts warn that closing the Strait could disrupt nearly 20% of the worlds oil and gas shipments, potentially pushing oil prices to $80 per barrel.MintNdtv
  • India depends heavily on the Strait of Hormuz for over two-thirds of its oil imports, making it vulnerable to price spikes and supply disruptions.LivemintNdtvThehindu
  • Analysts predict a 40-50% increase in shipping costs and 15-20 day delays if the Strait of Hormuz is closed, severely impacting global maritime logistics.Thehindu
  • Iran's Foreign Minister Abbas Araqhchi stated Iran has multiple response options, including asymmetric measures against US bases in the region.Cnn1
Iran’s Supreme National Security Council is weighing a decision to close the Strait of Hormuz, a vital global energy chokepoint, in response to US military strikes on Iranian nuclear facilities.
Mint
Mint
Iran's Supreme must make the final decision on whether to close the Strait of Hormuz, Iran's Press TV said on Sunday, after parliament reportedly approved the ‘closure’ proposal. Iranian lawmaker and Revolutionary Guards Commander Esmail Kosari told journalists that doing so is on the agenda and ‘will be done whenever necessary.’
Livemint
Livemint
Iran is considering closing the key oil shipping route Strait of Hormuz after the US bombed three of its nuclear facilities, Iranian media reported today.
Ndtv
Ndtv
India imports about 80% of its oil requirement, meaning that disruptions in the Strait of Hormuz will likely impact the price of oil that India purchases.
Thehindu
Thehindu
Iran also has the power to influence the “entire commercial shipping in the Gulf,” Ravid said, should it decide to close the Strait of Hormuz, a key oil shipping route. About 20 million barrels of oil flow through the strait each day, according to the US Energy Information Administration.
Cnn
1
Key Stats at a Glance
Global oil and gas shipment disruption risk
20%
Mint
Brent crude price increase since June 13
more than 10%
Mint
Brent crude price level
$77 a barrel
Mint
Predicted increase in shipping costs
40-50%
Thehindu

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Section 2 background
Background Context

Strategic context of Strait of Hormuz tensions

Key Facts
  • The Strait of Hormuz is a vital global energy chokepoint through which about 20 million barrels of oil flow daily, linking the Persian Gulf to global markets.Cnn1
  • The current crisis echoes the 1980s 'Tanker Wars' during the Iran-Iraq conflict, when both sides attacked oil tankers in the Gulf, highlighting the strategic importance of the Strait.Mint
  • Experts caution Iran might refrain from fully choking the Strait as such a move would affect its allies and friends more than its enemies.Livemint
  • The US maintains a significant military presence in the Middle East, with about 40,000 troops across 19 sites, some permanently stationed, increasing the complexity of regional tensions.Cnn1
  • Iran may engage in a war of attrition using asymmetric tactics such as terrorism or cyberattacks to exhaust adversaries' will or capacity to fight.Cnn1
Key Stats at a Glance
US military sites in Middle East
19 sites
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