Oil Prices Could Soar After Iran Moves To Close Strait Of Hormuz

dailycaller.com

Iran’s parliament has voted to close the Strait of Hormuz, a narrow shipping channel that serves as a vital route for approximately 20% of the world’s daily oil supply. The measure awaits final approval by Iran’s Supreme Council, which must decide by the end of the day, according to Iran’s state-run Press TV.

The proposed closure follows U.S. strikes on Iranian nuclear facilities. Commander Esmaeil Kosari of Iran’s Revolutionary Guards said Saturday that the action “will be done whenever necessary,” the New York Post reported. (RELATED: How The US Crippled Iran’s Nuclear Program In One, Clandestine Attack)

The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, is bordered by Iran to the north and Oman and the United Arab Emirates to the south. At its narrowest point, the strait is 20 miles wide, but the deep-water shipping lanes are less than two miles wide in each direction. This geography makes the area susceptible to maritime threats such as shore-based missile attacks, naval interceptions and underwater mining.

Iran does not hold legal authority to close the waterway, which remains under international maritime law. Any military effort to block sea traffic would likely face opposition from international forces. The U.S. Fifth Fleet and allied naval forces regularly patrol the area.

A closure could disrupt roughly $1 billion in oil shipments daily. Countries most dependent on oil transported through the strait include China, India, Japan and South Korea.

Iran has previously disrupted shipping in the region, including the seizure of vessels in 2022, 2023, and 2024 near the Strait of Hormuz.