A major disruption to global crude oil and liquefied natural gas (LNG) supplies looms as Iran’s Parliament has approved a proposal to close the strategic Strait of Hormuz in retaliation for recent U.S. military strikes on three of its nuclear facilities.
According to Iran’s state-run Press TV, the final decision on whether to enforce the closure rests with the country’s Supreme National Security Council, which is expected to deliberate in the coming days.
The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Gulf of Oman and ultimately the Arabian Sea, is considered one of the most critical chokepoints for global energy shipments.
It borders Iran and Oman and is used by major oil-producing nations including Iran, Saudi Arabia, and the United Arab Emirates to access international markets.
Data from the U.S. Energy Information Administration (EIA) underscores the strait’s significance: “Flows through the Strait of Hormuz in 2024 and the first quarter of 2025 accounted for over one-quarter of global seaborne oil trade and about one-fifth of total global oil and petroleum product consumption.
“Additionally, roughly 20% of global LNG shipments also passed through the strait, primarily from Qatar.”
A shutdown of the Strait of Hormuz would have far-reaching implications for global energy markets.
It would severely disrupt oil and gas exports from the region, likely triggering a sharp rise in crude prices and cascading effects on the cost of goods and commodities worldwide.
In response to the potential crisis, U.S. Secretary of State Marco Rubio urged China to pressure Iran against going through with the blockade, citing Beijing’s heavy reliance on Gulf oil.
“I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Strait of Hormuz for their oil,” Rubio said in an interview on Fox News.
He added, “If they do that, it will be another terrible mistake. It’s economic suicide for them.”
When asked by reporters about Iran’s intentions regarding the strait, Iranian Foreign Minister Seyed Abbas Aragchi offered a cryptic response: “A variety of options are available to Iran.”
As tensions escalate, global markets and diplomatic channels remain on edge, awaiting a final decision that could significantly reshape energy dynamics and geopolitical stability in the region.