Iran’s parliament has voted in favour of a resolution to close the Strait of Hormuz — one of the world’s most critical oil transit chokepoints — following US military strikes on three of Iran’s nuclear facilities. The measure, if enacted, could have sweeping global consequences, especially in the realms of energy security, regional stability, and international trade.
The decision, reported by state-run Iranian media on Sunday, is not yet final. It requires ratification by the Supreme National Security Council — Iran’s top national security decision-making body. Major General Esmail Kowsari, a senior lawmaker on the parliament’s National Security and Foreign Policy Committee, emphasised that the Council's input is essential before any formal action is taken.
Still, the mere passage of the resolution signals an aggressive posture and escalates the ongoing tensions between Iran and the United States. It also follows years of growing hostility in the region, marked most recently by wars between Israel and Hamas in Gaza, Hezbollah in Lebanon, and rising conflict dynamics involving Syria.
Why the Strait of Hormuz Matters
The Strait of Hormuz is a narrow maritime corridor — approximately 167 kilometres long and just 33 kilometres wide at its narrowest point — that connects the Persian Gulf to the Gulf of Oman and, by extension, to the Arabian Sea and international waters. It separates Iran to the north from the UAE and Oman to the south and is the only sea passage from the Persian Gulf to the open ocean.
This vital waterway carries about 17 million barrels of crude oil per day, accounting for nearly 20% of global oil trade and up to 30% of total oil transported by sea. Additionally, a third of the world’s liquefied natural gas (LNG) exports also pass through this route, underscoring its unmatched geopolitical and economic significance.
Roughly 88% of all Persian Gulf oil exports — from major producers like Iran, Iraq, Saudi Arabia, Kuwait, and the UAE — must pass through the strait. The heavy reliance on this corridor makes it a perennial flashpoint in global security discussions.
Consequences of a Closure
If Iran were to act on its threat and successfully block the Strait of Hormuz, the consequences would be immediate and severe. Global oil markets would likely experience sharp price spikes due to the sudden disruption of a massive portion of the world’s energy supply. Analysts warn of oil prices possibly surging past $150 per barrel in the short term, particularly if the blockage is prolonged or accompanied by further hostilities.
Such a move would not only destabilise global markets but also ignite possible military interventions. The United States Navy’s Fifth Fleet, based in Bahrain, along with allied navies, routinely patrols the area to ensure the free flow of commerce and could respond with force if Iranian ships attempt to block access to international waters.
Strategic Impact on India
India, which imports around 85% of its crude oil needs, would not be immune to such turmoil. While New Delhi has diversified its energy suppliers in recent years — notably increasing imports from Russia and Latin America — a considerable portion of its oil still originates from the Gulf region. Disruption in the Strait of Hormuz could therefore lead to spikes in fuel costs, which would ripple through the economy, affecting inflation, trade balances, and the pricing of essential commodities.
Union Petroleum Minister Hardeep Singh Puri has attempted to reassure Indian citizens and markets, stating in a recent interview that India is monitoring the situation closely and that current oil prices remain under control. However, experts suggest that sustained instability in the Hormuz region could challenge those assurances, particularly if alternative routes and reserves are unable to compensate for lost supply.
Can Iran Really Enforce a Closure?
Legally, Iran cannot unilaterally close the Strait of Hormuz, which is recognised as an international strait under the United Nations Convention on the Law of the Sea (UNCLOS). According to international law, ships of all nations — including military and commercial vessels — enjoy the right of passage through such straits.
For Iran to enforce a closure, it would need to do so through direct military means or threats — such as mining the waters, seizing tankers, or launching missile strikes. These tactics would almost certainly draw a robust counter-response from the West, especially the United States, which views freedom of navigation in the strait as a vital interest.
Moreover, such a move could backfire economically for Iran. While the regime may hope to pressure its adversaries, closing the strait would also block its own oil exports. Iran’s key terminal at Jask lies near the eastern edge of the Strait of Hormuz, and any disruption in shipping lanes would curtail Tehran’s revenue streams — particularly from its top buyer, China. In doing so, Iran would risk alienating Beijing, which has historically defended it in forums like the UN Security Council.
Global and Regional Implications
The ripple effects of a closure could extend far beyond the energy markets. Insurance premiums for tankers operating in the region could skyrocket. Global supply chains already reeling from disruptions caused by geopolitical instability and climate change would face further strain. Military escalations could trigger wider conflicts, drawing in regional players like Saudi Arabia and the UAE, as well as global powers such as the US, UK, and China.
Meanwhile, Middle Eastern volatility — already heightened by the Gaza conflict, Hezbollah's activity in Lebanon, and the fractured state of Syria — could enter a dangerous new phase, turning the region into an even more combustible theatre of war.
Final Outlook
While the resolution passed by Iran’s parliament is not yet binding, its symbolic and strategic value is immense. It signals that Iran is prepared to upend a core pillar of global commerce in response to military pressure, even if doing so involves grave economic and diplomatic consequences.
The coming days will be crucial. Much depends on whether the Supreme National Security Council enforces the proposed closure, and how regional and global actors respond. For now, the world watches anxiously as one of the most strategically sensitive waterways on the planet edges closer to becoming a potential flashpoint in an already volatile geopolitical landscape.
