Strait of Hormuz (Social Media)
World News:Iran's Parliament has passed a resolution to close the Strait of Hormuz following the recent military strikes by the United States on its nuclear facilities. The Strait of Hormuz is one of the world’s most critical oil chokepoints, with nearly 20% of global crude passing through it daily. The move, although pending final approval by Iran's Supreme National Security Council, has already triggered international concern. Global oil prices have surged amid fears of supply disruption. For India, which imports over 85% of its crude oil, the potential closure poses a serious threat to energy security. Rising transportation costs and oil prices may lead to inflation and economic strain. The world now watches anxiously as tensions in the Gulf escalate further.
On 22 June 2025, the US launched an aerial attack on Iran's major nuclear sites - Fordo, Natanz and Isfahan. The attack is considered part of the American-Israeli joint intelligence campaign.In response, the Parliament of Iran passed a resolution to close the Straight of Hormuz, which is now awaited for the approval of the Supreme National Security Council.
This waterway is located between Iran and Oman and is one of the world's busiest and sensitive oil transit routes. About 20 percent of the global crude oil - 20 million barrels per day - passes through this sea route.It is the only sea export route for countries such as Saudi Arabia, Kuwait, Iraq and UAE.If this route is closed, the global oil supply chain may collap, which will lead to a huge jump in international oil prices.
1. Bounce in oil prices
India depends on imports for more than 85 percent of its crude oil needs. When the straight of hormuz is closed, oil prices can reach $ 100 to 150 per barrel, which will make petrol, diesel and LPG expensive.
2. Inflation and trade deficit
Transport, agriculture, industry and power generation will all be affected due to energy being expensive. This will increase inflation and current account deficit in the country.
3. subsidy burden
The government may have to give additional subsidy on petroleum products, which can worsen the budget balance.
4. Logistics and exports
Longer the route of oil tankers will increase shipping costs, which will affect both India's imports and exports - all of the chemicals, textiles and automobile industries.
Completely shutting down the Straight of Hormuz will be a courageous and risky step for Iran. Doing so can harm his own economy as he is also an oil exporter and his dependence is on this path.Experts believe that this step may be part of symbolic pressure. The US Navy and the International Maritime Security Force are fully prepared to remove any barrier.
The United Nations, European Union, India, China and Russia have appealed to all parties to exercise restraint. The US has clarified that the Straight of Hormuz will not be allowed to be closed at any cost and has not denied military intervention.
India has activated its strategic petroleum reserves.Efforts are being made to ensure oil supply from alternative sources like Russia, Brazil and America.A plan has already been prepared on options like the job port so that India can maintain supply beyond the Straight of Hormuz.The possibility of the closure of the Straight of Hormuz is a matter of serious concern globally. India may have strengthened its energy supply strategy, but if stressed and deepened, the whole world including India may have to face economic shocks.Peace and diplomacy is the way to get out of this crisis. India will have to give more emphasis on energy diplomacy and strategic storage.
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