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Iran Orders Strait of Hormuz Closure — A Dangerous Gamble with Global Stakes

Perisha Syed by Perisha Syed
June 23, 2025
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Iran’s parliament has backed a plan to close the Strait of Hormuz in direct response to recent U.S. strikes on its nuclear facilities—a move that, if executed, could jolt global oil markets and deepen Middle East tensions.

Strait of Hormuz
Strait of Hormuz

Iran’s announcement comes right after the U.S. launched a series of strikes on key nuclear sites inside the country – a move that’s triggered outrage in Tehran. While the final decision rests with Iran’s Supreme National Security Council, parliament has backed the closure, and officials are already talking about it like a done deal.

The Strait of Hormuz isn’t just any waterway. It’s narrow, just over 30 kilometers wide, but it handles nearly 20% of the world’s oil traffic every single day. That’s millions of barrels of crude flowing from the Gulf states to the rest of the world – oil that powers industries, economies, and households far beyond the region.

By threatening to block it, Iran isn’t just responding militarily – it’s shaking the global economy at its foundations.

Why Now?

Iran sees this as a high-stakes warning shot to the West, especially after U.S. President Donald Trump claimed responsibility for “obliterating” its nuclear program. Tehran has long used the Strait as leverage, but this time feels different. Iran is under direct attack. Its alliances, economy, and military are under pressure. And this move could force the world to pay attention.

Predictably, the world is reacting fast. Oil prices jumped the moment the news broke. Energy analysts are already warning of major disruptions. The U.S. has responded by strengthening its military presence in the region, with aircraft carriers and destroyers on standby.

Meanwhile, China – Iran’s biggest oil buyer – is urging restraint. Beijing doesn’t want its energy supplies blocked and is now being asked by the U.S. to lean on Tehran to keep the Strait open. But with tensions this high, it’s unclear whether diplomacy can win out.

Why the Strait Matters So Much?

This isn’t just about Iran and the U.S. The Strait of Hormuz is the single most important chokepoint in the global oil trade. Gulf nations like Saudi Arabia, the UAE, and Iraq rely heavily on it to export their crude. If it’s closed even briefly, transporters will have to navigate longer, more circuitous routes to send supplies which will in turn, cause oil prices to skyrocket, hitting economies worldwide – from Europe to Asia and beyond.

Has Hormuz ever been blocked and how can it be shut down?

Till date, the Strait of Hormuz has never been blocked despite ongoing Middle East tensions. Among alternative ways to block it, Iran could mine the straits, these bottom lines sit on the sea bed and can sense a ship sailing overhead, which could trigger them to detonate, thus sinking the ship. An alternative method could be through anti-ship ballistic missiles as well as other options. It remains to be seen how and if Iran chooses to take this route and how the United States military and other countries might react.

For Iran, it’s a risky move. While it might apply pressure on the West, it also threatens its own oil exports and could alienate allies like China and Russia. If Tehran follows through, it could invite further conflict, especially from Gulf countries who won’t sit quietly if their lifeline is blocked.

Or, as Iran possibly hopes for, the move might cause states who are presently silent on the US attack on Iran’s nuclear enrichment sites, to exert pressure on the US government to back down.

Will Iran actually close the Strait or keep using it as a bargaining chip? Will the U.S. retaliate with military force or economic pressure? How will the markets react as oil supply chains come under threat?

One thing is certain: Iran’s decision to close the Strait of Hormuz marks a dangerous new chapter. What began as airstrikes could now spiral into a full-blown energy crisis – with consequences that stretch far beyond the Middle East.

Sources: BBC, The Guardian , Reuters

Trump Strikes Iran – All You Need To Know & How the World Responds

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Tags: chinaiRANisraelIsrael iranMiddle eastnewsOil supplyStrait of hormuzUSA
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