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Tension on oil price as Iran’s parliament votes to close strait of Hormuz
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Tension on oil price as Iran’s parliament votes to close strait of Hormuz 

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Iran’s parliament has voted to close the Strait of Hormuz considered a strategic and vital asset.

A senior Iranian lawmaker on Sunday said that the parliament (Majlis) had agreed to close the key artery for world energy trade as a response to the US aggression against the Middle-East country and the alleged silence of the international community.

The lawmaker said legislators had reached a consensus on the closure of the strait, though Iran’s Supreme National Security Council has the final decision.

Located at the mouth of the Persian Gulf, the Strait of Hormuz is one of the most vital chokepoints in global trade.

About 20 per cent of the world’s oil, estimated as to about 17 to 18 million barrels per day, passes through it.

Global Oil Prices

The move could block $1 billion in oil shipments per day and is likely to send oil prices soaring.

The Supreme Council’s decision is expected to be made as soon as possible.

This handout picture provided by the office of Iran’s Supreme Leader Ayatollah Ali Khamenei shows him, flanked by the Iranian flag and a portrait of his predecessor the late Supreme Leader and Iranian revolution leader Ayatollah Ruhollah Khomeini, giving a televised address in Tehran on June 18, 2025. (Photo by KHAMENEI.IR / AFP)

Iran’s major escalation in response to US strikes on its nuclear facilities “will be done whenever necessary,” media reports quoted Email Kosari, Commander in the Revolutionary Guards, as saying on Sunday.

The strait connecting the Gulf of Oman with the Persian Gulf is just 20 miles wide at its narrowest point.

Shipping lanes in the strait — which is the area deep enough for ships to pass — are even narrower at less than two miles wide in each direction, making them much more vulnerable to attacks and threats of closure

Being a shallow channel, it is a target for underwater mining, while the narrowness of the strait makes passing vessels vulnerable to attack from shore-based missiles or interception by patrol boats or helicopters.

However, media reports say Iran has no legal authority to block sea traffic through Hormuz, and any attempts by its navy to bar entry to the strait would likely be met with a strong response.

Impact On Asia

In addition to Iran, the narrow waterway is a major channel for the bulk of oil from regional giants like Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE.

According to reports, the Asian continent is likely going to bear the brunt of any closure of the waterway as China, Japan, India, and South Korea get most of their oil imports from the Strait of Hormuz.

China, a strategic partner of Iran, is the world’s largest buyer of Iranian oil and would be affected by any closure.

 

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