Context: In response to the recent US military strikes on Iranian nuclear facilities, Iran’s Parliament has approved the closure of Strait of Hormuz. However, the final decision will be taken by Iran’s Supreme National Security Council.
Relevance of the Topic: Prelims: Key facts about Strait of Hormuz. Mains: Importance of Strait of Hormuz.
The ongoing tensions between Israel and Iran hold serious consequences for global energy markets, especially for countries like India, which rely heavily on oil and gas imports as Iran has reportedly threatened that it could consider closing the strait of Hormuz.

About Strait of Hormuz
- Strait of Hormuz is a critical narrow waterway between Iran and Oman. It connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
- It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world’s most critical energy chokepoints. Around 20% of the global oil and gas supply- including shipments from Saudi Arabia, Iraq, the UAE, Qatar, and Iran- transit this narrow channel daily.
- If it is closed by Iran, oil prices could jump to over $120, or even $150 per barrel from $74 per barrel.
- At just 33 kilometers wide at its narrowest point, with shipping lanes only 3 kilometers wide in each direction, the strait is particularly vulnerable to disruption.
Has the Strait ever been closed?
Despite past threats, Iran has never closed the Strait of Hormuz- even during major conflict- due to its global energy importance and the risk of strong retaliation from regional powers and the US. Iran might refrain from choking the Strait of Hormuz as:
- Rupture Iran's relationship with Oman (which owns the southern half of the strait) and the Gulf Cooperation Council (GCC States).
- Heavily impact China, Iran’s largest trading partner. China is the number one importer of oil, accounting for nearly three-quarters of Iran’s oil export.
- Impact Iran: Closure of its oil exporting terminal and associated economic hit would fuel popular discontent, which might impact both regime stability, and reformist tendencies for Iranian President.
Importance of the Strait of Hormuz for India:
The Strait of Hormuz is vital for India due to its energy dependence in the region with most of this energy coming via the Strait of Hormuz.
- Strategic Energy Chokepoint: India’s oil supply is heavily reliant on the region, with around 40% of its crude oil imports and 54% of its liquefied natural gas (LNG) imports travelling through the Strait of Hormuz. Any threat or blockade increases freight and insurance costs (risk premium), raising the landed price of oil and gas in India.
- Global Price Surge Impact: Even without direct supply cuts, tensions cause global oil price spikes, which hurt India due to its heavy dependence on energy imports. This can affect India’s trade deficit, foreign exchange reserves, rupee stability, and inflation levels.
- Indirect Impact via China: Even if India does not import Iranian oil (due to US sanctions), any disruption in Iran’s supply to China will push Chinese demand to India’s suppliers, tightening global supply and raising prices.
Conclusion: The Strait of Hormuz is a lifeline for India’s energy security. While immediate disruption is unlikely, continued tension in the region poses serious economic risks.










