{"id":857518,"date":"2025-06-23T09:12:23","date_gmt":"2025-06-23T14:12:23","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/23\/iran-to-shut-the-strait-of-hormuz-why-it-matters\/"},"modified":"2025-06-23T09:12:23","modified_gmt":"2025-06-23T14:12:23","slug":"iran-to-shut-the-strait-of-hormuz-why-it-matters","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/23\/iran-to-shut-the-strait-of-hormuz-why-it-matters\/","title":{"rendered":"Iran to shut the Strait of Hormuz: Why it matters?"},"content":{"rendered":"
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Home<\/a><\/span>World News<\/a><\/span>Iran to shut the Strait of Hormuz: Why it matters?<\/span><\/p>\n

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Iran\u2019s move to consider closing the Strait of Hormuz\u2014a vital artery for global oil trade\u2014has triggered alarm across energy and shipping markets, as analysts warn of price spikes and strategic instability. With one-fifth of the world\u2019s oil flowing through the strait, even a temporary disruption could have global ripple effects.<\/h2>\n<\/p>\n
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\"Profile<\/p>\n

By Megha Rani <\/span><\/a>\u00a0<\/g><\/clipPath><\/defs><\/svg>\u00a0<\/a>June 22, 2025, 9:55:45 PM IST (Updated)<\/span><\/span><\/p>\n<\/div>\n

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\"Iran<\/p>\n

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In a move that could jolt global energy markets, Iran\u2019s parliament has approved a measure to close the Strait of Hormuz\u2014a critical maritime chokepoint for global oil shipments\u2014following US airstrikes on Iranian nuclear facilities. State-run Press TV reported on Sunday (June 22) that the proposal reflects broad consensus within the Iranian legislature, although the final decision rests with the country\u2019s Supreme National Security Council.<\/p>\n

The Strait of Hormuz, a narrow channel at the mouth of the Persian Gulf, serves as a conduit for nearly 20% of the world\u2019s daily oil output, transporting exports from major producers including Saudi Arabia, Iraq, and the UAE. For India, the stakes are especially high as about 40% of its crude oil imports and over half of its LNG pass through this route.<\/p>\n

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\nMajor General Kowsari, a member of the parliamentary National Security Committee, stated the measure reflects Iran\u2019s intent to respond decisively but lawfully to the US assault. If approved, it would signal one of the most direct and economically consequential retaliatory steps in the ongoing confrontation.<\/p>\n

\nCitigroup analysts warned of significant market turbulence if the closure proceeds. \u201cAny closure of the Strait could lead to a sharp price spike,\u201d noted a recent memo, forecasting Brent crude could surge to $90 a barrel under their bullish scenario\u2014even though they view a prolonged halt in shipping as unlikely.<\/p>\n

\nMajor energy players are already drawing up fallback plans. \u201cIf that artery is blocked, for whatever reason, it has a huge impact on global trade,\u201d Shell CEO Wael Sawan said at the Japan Energy Summit in Tokyo. \u201cWe have plans in the eventuality that things deteriorate.\u201d<\/p>\n

\nIn an exclusive broadcast on CNBC-TV18, a panel of experts dissected the far-reaching consequences of the escalating Middle East crisis, with energy security taking center stage. From the Strait of Hormuz to global financial markets, panelists warned of ripple effects that could disrupt oil flows and trigger economic volatility.<\/p>\n

\nNilesh Shah, Managing Director of Kotak Mahindra AMC, cautioned that markets would initially react negatively. \u201cUltimately, it will come down to oil availability and pricing to determine the market\u2019s direction,\u201d he noted.<\/p>\n

\nProfessor Sean Foley of Middle Tennessee State University highlighted the broader stakes, warning that a closure of the Strait of Hormuz\u2014an option Iran has floated\u2014would not only choke Iranian oil exports but also impact other Gulf producers. \u201cThis would drive up global oil prices, especially for major importers like China and India,\u201d he said.<\/p>\n<\/div>\n

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(Edited by : Priyanka Deshpande)<\/span><\/p>\n

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First Published:\u00a0<\/p>\n

Jun 22, 2025 8:02 PM<\/p>\n

IST<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n

Read More<\/a>
\n Megha Rani<\/p>\n","protected":false},"excerpt":{"rendered":"

Home World News Iran to shut the Strait of Hormuz: Why it matters? Iran\u2019s move to consider closing the Strait of Hormuz\u2014a vital artery for global oil trade\u2014has triggered alarm across energy and shipping markets, as analysts warn of price spikes and strategic instability. With one-fifth of the world\u2019s oil flowing through the strait, even<\/p>\n","protected":false},"author":1,"featured_media":857519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28802,28801],"tags":[],"class_list":["post-857518","post","type-post","status-publish","format-standard","has-post-thumbnail","category-hormuz","category-strait"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/857518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=857518"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/857518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/857519"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=857518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=857518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=857518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}