Iran's decision to close the Strait of Hormuz will affect many countries

23-Jun-2025 11:35 AM

Tehran. Following a US attack on three of its major nuclear bases, Iran’s parliament has approved a proposal to close the strategically important Strait of Hormuz.

Around 25 percent of the world’s crude petroleum and natural gas supplies pass through this narrow waterway, and its closure is expected to significantly disrupt global energy markets.

This move comes amid the ongoing Iran-Israel conflict, which has already driven up global petroleum prices, adversely affecting developing and underdeveloped countries in Asia.

Petroleum prices are closely linked with inflation, and further increases could exacerbate economic challenges for many nations.

Geographically, the Strait of Hormuz holds critical importance as it connects the Persian Gulf with the Arabian Sea and the Indian Ocean.

At its narrowest, the strait is about 33 km wide, but the actual shipping lane is just 3 km wide, making it vulnerable to military control. With the official announcement of its closure, any vessel attempting to pass through could face the risk of Iranian military action.

Most crude oil exports from major West Asian countries—Saudi Arabia, Iraq, UAE, Qatar, Kuwait, and Iran—rely on this strait for shipping.

While previous disruptions in the Persian Gulf mainly impacted the US and Europe, the current situation could severely affect Asian countries, including China, which are heavily dependent on this route for energy imports.

Regarding India, although the Petroleum Minister has claimed that the closure will not significantly impact the country, the reality suggests otherwise.

India imports around 5.5 million barrels of crude oil daily, and approximately 2 million barrels come through the Strait of Hormuz.

While India does have alternative sources such as Russia, the US, and Brazil, the disruption is still expected to pose logistical and cost-related challenges in the short term.