Iran Warns of Blocking Oil Superhighway Amid Escalating US Strikes

GG News Bureau
Tehran, 22nd June: In a dramatic escalation following U.S. airstrikes on its nuclear facilities, Iran is now considering shutting down the Strait of Hormuz, a critical global oil shipping route, according to reports in Iranian state media.

The Strait of Hormuz is the world’s most vital oil chokepoint, with nearly 20% of global oil and gas supplies flowing through the narrow sea passage. It connects the Persian Gulf to the Arabian Sea and the Indian Ocean, flanked by Iran to the north and the Arabian Peninsula to the south. At its narrowest, the strait is just 33 km wide, with shipping lanes even narrower—only 3 km wide in either direction—making it highly vulnerable to threats and disruptions.

The potential closure comes in direct response to U.S. bombing raids that targeted three key Iranian nuclear sites in Fordow, Natanz, and Isfahan. Iran’s Revolutionary Guards have signaled that retaliation is far from over and that strategic actions such as shutting the strait are now on the table.

A shutdown would significantly disrupt oil exports from major Gulf producers including Saudi Arabia, Iraq, the UAE, Qatar, and Kuwait. While Western nations were traditionally the most affected by energy disruptions from the Gulf, today, Asian economies, particularly China and India, would bear the brunt.

For India, the Strait of Hormuz is crucial, with approximately 2 million barrels per day (bpd) of its 5.5 million bpd crude oil imports passing through the strait. However, Indian energy officials have expressed confidence that the country will weather any supply shock. With diversified import routes from Russia, the U.S., and Brazil, and LNG supplies from nations outside the region, India appears well-positioned to absorb the impact.

Nonetheless, analysts caution that the geopolitical flashpoint could send oil prices soaring. Crude prices may soon spike to $80 per barrel, potentially inflating global inflation concerns and further roiling international markets already strained by multiple regional conflicts.