Iran parliament moves to close Strait of Hormuz after US's airstrikes, 20% of global oil flow at risk

Amid growing friction with the United States and Israel, Iran’s parliament has moved to raise the stakes dramatically. On Sunday, lawmakers approved a proposal to close the Strait of Hormuz, a narrow yet crucial conduit for global oil and gas supplies, following recent US airstrikes on Iranian nuclear sites.

The decision, reported by state-run Press TV, now awaits the final word from Iran’s Supreme National Security Council, the country’s top authority on such matters.

The Strait of Hormuz, wedged between Iran and Gulf Arab states, is one of the world’s most sensitive energy corridors. Every day, nearly 20% of the global oil and gas supply flows through this 33-km-wide bottleneck, with just 3-km-wide shipping lanes in each direction — making it a vulnerable flashpoint for global markets.

Major exporters such as Saudi Arabia, Iraq, the UAE, Qatar, Iran and Kuwait rely on the strait to ship crude. While the West once bore the biggest risk from any disruptions, today it’s China and Asia that would suffer most from a blockade.

India imports about 2 million barrels per day (bpd) of crude through the strait, out of its total 5.5 million bpd. Despite that dependency, analysts say India is unlikely to be severely impacted. Diversification efforts have secured alternative sources from Russia, the US, and Brazil, softening the blow of any potential closure.

India's gas supplies are also secure. Its top supplier, Qatar, bypasses the Strait of Hormuz, and other LNG imports from Australia, Russia and the US are not at risk.

Still, energy markets remain on edge. The specter of a closure has revived memories of the “Tanker Wars” in the 1980s, when Iran and Iraq targeted oil tankers, dragging US naval forces into the conflict. Washington’s 1987 Operation Earnest Will saw US warships escort tankers — a mission that ended tragically in 1988 when the USS Vincennes shot down an Iranian airliner, killing 290 people.

More recently, tensions resurfaced in 2023 when Iran seized the Advantage Sweet, a Chevron-chartered oil tanker, in the Gulf of Oman. The vessel was held for over a year before being released.