In response to the attack by the United States last Saturday (21) against nuclear facilities in the country, The Parliament of Iran approved on Sunday (22) the closure of the Ormuz Straitmain sea route for oil transport in the Middle East and where about 20% of the oil consumed in the world passes.
In an interview with Fox News, US Secretary of State Marco Rubio said that the close closure would be a “economic suicide” to Iran, as it would damage several countries. “The Chinese will pay a high price, and every country in the world will pay a high price. We are going too,” he warned.
Located between Oman and Iran, the Hormuz Strait connects the Persian Gulf to the Oman’s Gulf and, consequently, to the Indian Ocean. Oil -producing countries such as Saudi Arabia, Arab Emirates, Kuwait and Iran itself have the narrow as the main route to export oil and gas to the global market. In addition to the strategic location, the depth and width of the narrow enable the traffic of the largest oil ships in the world.
According to US Energy Information Administration (EIA), an American agency that works with energy data, in 2024 were moved by the Hormuz Strait 20 million barrels of oil per day. This is equivalent to 20% of the global consumption of oil fluids. In addition, about one fifth of the global liquefied natural gas trade (LNG) also moved there.
China, India, Japan and South Korea were the main destinations of gross oil transported through the Hormuz Strait, accounting for 69% of the total volume. In the case of the United States, about 7% of gross oil imports passed the Strait.
According to EIA, closure of the Ormuz Strait can cause substantial supply delays and increase transportation costs. The direct consequence would be a trigger in oil and gas prices. “Although most production can be circumvented by other routes, some, such as Hormuz Strait, do not offer practical alternatives,” the agency says.
