Iran Parliment Approves Strait of Hormuz Shutdown After US Strikes; Threatens Global Oil Prices Surge

Iran’s parliament on Sunday approved a measure to close the strategically vital Strait of Hormuz, a chokepoint for nearly a fifth of the world’s oil supply, in a dramatic escalation following US airstrikes on its nuclear facilities. The move, while not yet a final order, has rattled global energy markets and drawn sharp warnings from Washington.

The parliamentary vote is a direct retaliation for the US military’s ‘Operation Midnight Hammer’, which targeted and, according to the US, “obliterated” Iran’s nuclear sites at Fordow, Natanz, and Isfahan over the weekend. While the parliament has given its nod, the final decision to implement a blockade rests with Iran’s Supreme National Security Council.

The Strait of Hormuz, a narrow waterway linking the Persian Gulf to the open sea, is the world’s most important oil transit chokepoint. Major producers like Saudi Arabia, the UAE, Iraq, and Kuwait, along with nearly all of Qatar’s liquefied natural gas (LNG), depend on this route to reach global markets. Any disruption could have severe consequences for the world economy.

A former US Treasury official, Jonathan Schanzer, warned that any attempt by Iran to close the strait would be “suicidal” and would be met with “unbelievable force” from the United States and its allies.

Global oil markets reacted instantly to the heightened risk, with Brent crude prices having already surged more than 10% since the direct Iran-Israel conflict began ten days ago. Analysts predict prices could jump sharply if the strait is actually closed.

The threat has also put the international shipping industry on high alert. While major carriers have not yet stopped transiting the strait, the number of empty oil tankers heading into the Gulf has reportedly dropped, signaling a growing aversion to the increased risk.

Experts remain divided on whether Tehran will follow through on the threat. A full blockade would also halt Iran’s own exports and severely impact its key trading partners, most notably China. However, the unprecedented direct strikes by the US on its soil may have pushed Iran’s leadership to consider more drastic measures than ever before.

For India, which imports over 80% of its crude oil, a significant portion of which passes through the strait, the primary concern is price volatility. While the Indian government has expressed confidence in its diversified supply chains, particularly increased imports from Russia and the US, a global price shock would inevitably impact the Indian economy.