Iranian lawmakers have voted to support closing the Strait of Hormuz, a vital waterway that handles around 20% of global oil trade, amid tensions with the US over airstrikes on three Iranian nuclear sites. The move could disrupt energy markets and drive up prices worldwide if agreed upon by Supreme Leader Ayatollah Ali Khamenei.
The Strait of Hormuz is a narrow passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, with two shipping lanes that are 2 miles wide in each direction. Around 20% of global oil trade passes through it, making any closure likely to spike global prices.
Experts warn that if Iran were to cut off access to the Strait, Asian markets would be most hit, but American markets would also be affected due to the significant amount of oil imported from Asia. A closure could lead to a 30-50% increase in oil prices, with gas prices potentially rising by $5-$7 per gallon.
The decision to close the Strait is largely dependent on Supreme Leader Khamenei’s approval, as the parliament vote merely advises him of the option. The US has vowed to respond strongly if Iran were to attack its oil infrastructure or blockade the Strait.
The world waits with bated breath for Iran’s response, which could have far-reaching consequences for global energy markets and economies.
Source: https://www.newsweek.com/how-could-strait-hormuz-closure-impact-americans-2089072