• Iran's parliament approved a motion to consider closing the Strait of Hormuz.
• The strait is vital for global oil trade, carrying about 20% of the world’s oil supply.
• Potential closure could lead to significant spikes in global oil prices.
• The US Fifth Fleet is positioned in Bahrain to protect shipping in the strait.
• Asian markets, including India and China, are expected to be most affected by disruptions.

Following recent U.S. airstrikes on Iranian nuclear facilities, there has been a surge in discussions about the closure of the Strait of Hormuz, a critical waterway for global oil transport. Iran's parliament has backed a resolution calling for the strait's closure, with a final decision pending from the Supreme National Security Council. The strait connects the Persian Gulf to the Gulf of Oman and is approximately 21 miles wide at its narrowest point, facilitating significant oil and gas shipping, according to trtglobal and indiatimes.

Approximately 20% of the global oil supply transits through the Strait of Hormuz. In 2024, an estimated 20 million barrels of oil per day passed through this vital chokepoint, underscoring its significance to international energy markets. Iran has frequently threatened to close the strait in response to Western actions, emphasizing its control over this critical route, as reported by CBS News and Newsweek.

Given these escalating tensions, experts warn that a closure could lead to an immediate spike in oil prices, potentially increasing by 30% to 50%. Such a drastic market reaction would impose significant costs on global economies, with Asian nations—particularly India and China—being most affected, according to indiatimes and CBS News.

The U.S. Energy Information Administration has noted that while the majority of oil exports through the strait go to Asian markets, around 2 million barrels per day are directed towards the U.S. Closing the strait would not only impact oil prices but could also exacerbate price fluctuations in the domestic market, particularly affecting gas stations and consumer costs, as highlighted by Newsweek.

In addition to economic implications, any attempt by Iran to blockade the strait could provoke a severe international response. The U.S. naval presence in the region, particularly the Fifth Fleet stationed in Bahrain, is designed to uphold freedom of navigation and counter any potential Iranian aggression. Secretary of State Marco Rubio described such an action by Iran as "a suicidal move" that would likely draw condemnation and military retaliation, according to CBS News.

As further developments unfold, it remains critical to monitor Iran's decision regarding the closure of the Strait of Hormuz and its broader impacts on global oil supply and security. Discussions surrounding potential operational alternatives, including pipelines from Saudi Arabia and the UAE to transport oil, are underway, but their current capacity cannot fully compensate for any loss of access through the strait, reports trtglobal and indiatimes.