In a dramatic turn of events, the Iranian parliament voted on Sunday to potentially close the strategic Strait of Hormuz—a maritime passage that handles roughly 20% of global oil and gas shipments. While the final decision rests with the country’s Supreme National Security Council, the move comes amidst fiery tensions sparked by air strikes on three major Iranian nuclear facilities by the United States.
Tehran has declared its right to explore every avenue for self-defense, and experts warn that such a blockade could send global energy prices soaring. George Saravelos, head of foreign exchange research at Deutsche Bank, cautions that a complete disruption could push oil prices past $120 per barrel. Economic advisor Mohamed El-Erian chimed in, warning that both immediate and long-term repercussions could deal a severe blow to the already fragile global economy.
The potential closure of the Strait is stirring unease in the shipping industry—with many vessels rerouting to avoid the area, leading to delays and higher transportation costs. As tensions rise, the world watches closely: is this a last-resort measure or a ticking time bomb for global oil markets? ⚡️😱 Stay tuned for more updates on this unfolding situation!
Reference(s):
Analysis: What would happen if Iran blocked Strait of Hormuz?
cgtn.com
