Iran Approves Strait of Hormuz Closure, Threatening Global Oil Supply Amid Escalating Conflict

June 22, 2025 — Iran’s parliament has approved a measure to close the Strait of Hormuz, the world’s most critical oil corridor, in response to recent U.S. airstrikes on Iranian nuclear facilities and intensifying conflict with Israel. The decision, which still requires final approval from Iran’s Supreme National Security Council, has sent shockwaves through global energy markets, as the strait handles approximately 20% of the world’s daily oil supply—about 20 million barrels per day in 2024.

Strategic Importance of the Strait

The Strait of Hormuz, a narrow waterway just 33 kilometers wide at its narrowest point, links the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is a vital route for oil and gas exports from major producers including Saudi Arabia, Iraq, Iran, the UAE, and Kuwait. In 2024, an average of 20.3 million barrels of oil and 290 million cubic meters of LNG passed through the strait each day, with 84% of crude oil flows destined for Asian markets such as China, India, Japan, and South Korea.

Immediate and Global Impact

Should the closure be implemented, oil shipments valued at $1 billion per day could be disrupted, potentially causing a significant spike in global oil prices. Analysts warn that Brent crude could surge well above $100 per barrel if the strait is blocked, with few viable alternatives for rerouting such large volumes of oil and gas.

India, which imports roughly 90% of its crude oil—about 2 million barrels per day through the strait—would be particularly affected, though diversified sourcing from Russia, the U.S., and other countries may help cushion the blow. Other major Asian economies reliant on Hormuz shipments, including China, Japan, and South Korea, are also bracing for potential supply disruptions.

Background and Escalation

The move follows U.S. airstrikes on three Iranian nuclear sites, which Iran’s leadership has condemned as acts of aggression. Iranian commanders have stated that a “significant response” to U.S. actions will occur “whenever deemed necessary.” The closure threat is seen as a direct response to the military escalation and ongoing hostilities involving Israel and the United States.

Security and Alternatives

The strait’s vulnerability is heightened by its narrow shipping lanes—only two miles wide in each direction—making it susceptible to blockades and hostile actions. While Saudi Arabia and the UAE have invested in pipelines to bypass Hormuz, these alternatives have limited capacity and cannot fully compensate for a complete closure.

Next Steps

Iran’s Supreme National Security Council is expected to make a final decision on the closure later today. The U.S. maintains a significant naval presence in the region to deter potential threats, but has not yet issued an official response to the latest developments.

The global community is closely monitoring the situation, as any disruption to the Strait of Hormuz could have immediate and far-reaching consequences for energy security and the world economy.