Iran has threatened to shut down a key oil shipping route in response to U.S. airstrikes on three of its nuclear sites — a move that could send shockwaves through the global economy.
Lawmakers in Tehran have voted to block the Strait of Hormuz, a narrow waterway through which around 20% of the world’s oil and gas is transported. The vote has already shaken global markets, with oil prices jumping nearly 10% since the U.S. launched its attack.
The strikes — known as Operation Midnight Hammer — involved seven U.S. stealth bombers dropping powerful bunker-busting bombs on Iranian nuclear targets early Sunday morning.
However, Iran’s parliament doesn’t have the final say. The decision to close the Strait would need approval from top national security leaders, according to Iranian state media.
What is the Strait of Hormuz?
The Strait of Hormuz is a narrow body of water between Oman and Iran. It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, making it one of the most important energy trade routes in the world.
At its narrowest point, the Strait is just 21 miles (33 km) wide, with shipping lanes only about 2 miles (3 km) wide in each direction.
Roughly a fifth of global oil supply and a third of the world’s liquefied natural gas (LNG) moves through the Strait every day.
Why is it so important?
Between 2022 and May 2025, the Strait carried 17.8 to 20.8 million barrels of oil per day, including crude oil, condensates, and fuels.
Several major oil-producing countries — Saudi Arabia, Iran, Iraq, Kuwait, and the UAE — rely on the Strait to export oil, mostly to Asia. Even Qatar, one of the world’s largest LNG exporters, sends nearly all of its gas through this route.
While countries like Saudi Arabia and the UAE have tried to find alternate routes to reduce their reliance on the Strait, it remains a vital link in the global energy supply chain.
What happens if Iran closes it?
If Iran blocks the Strait, it could stop large oil and gas tankers from reaching markets in China, Europe, and other major economies, according to Bloomberg.
Such a disruption would likely push oil prices even higher and could lead to global economic instability.
On Monday, Kaja Kallas, the EU’s top diplomat, said Iran closing the Strait would be “extremely dangerous” and in no one’s interest.
“The risk of retaliation and escalation is serious,” she said. “Closing the Strait of Hormuz would not be good for anybody.”
What happens when a major shipping lane closes?
A recent example is the 2021 blockage of the Suez Canal, where a large ship got stuck for six days, halting traffic and delaying billions of dollars’ worth of goods worldwide. This caused shipping costs to rise and disrupted supply chains.
If the Strait of Hormuz closes, the effects could be even worse because it carries about 20% of the world’s oil and gas every day. A shutdown could push energy prices up sharply and cause global economic instability.
This shows why any threat to close key shipping routes triggers serious global concern.
Could China help prevent this?
U.S. Secretary of State Marco Rubio urged China to use its influence over Iran.
“They depend heavily on oil that passes through the Strait,” Rubio said on Fox News. “If Iran closes it, they’d be hurting themselves and others. It would be a massive economic mistake.”
He warned that closing the Strait would be seen as a major act of aggression and would force the U.S. and its allies to respond.
