• Closure of the Strait of Hormuz threatens about 20% of global oil and gas supplies.
• Iran reportedly warned ships to avoid the strait following US-Israel military strikes.
• Experts predict oil prices may rise significantly, impacting global inflation and economies.
• India's oil imports through Hormuz may face disruptions, raising costs for the country.
• Major shipping companies have suspended transit through the strait amid safety concerns.

The Strait of Hormuz has regained critical importance as tensions escalate between the US, Israel, and Iran following military strikes initiated by the US and Israel against Iran. These conflicts have led Iran to threaten closure of the strait, a vital corridor through which approximately 20% to 30% of the world's oil and gas supplies are transported daily according to Al Jazeera, South China Morning Post, and India Times.

Amid the escalating conflict, Iranian officials have signaled a potential blockade of the strait, which links the Persian Gulf to the Gulf of Oman. Reports indicate that Iranian Revolutionary Guards have broadcast warnings declaring that “no ship is allowed to pass” through the strait according to India Times, South China Morning Post, and Al Jazeera.

Shipping operations have already been affected, with major shipping companies like Hapag-Lloyd halting transits through the strait. This is reflective of broader concerns that any closure could dramatically elevate oil prices due to reduced supply availability. Analysts predict prices could soar to around $100 per barrel, exacerbating global inflation rates according to South China Morning Post and India Times.

For countries like India, which imports approximately 90% of its crude oil, the stakes are critical. Roughly 50% of India’s crude imports transit through the Strait of Hormuz. Disruptions here could challenge India's energy security, driving up costs amid an already precarious economic climate according to India Times, South China Morning Post, and Al Jazeera.

Maritime analysts emphasize that while Iran may threaten closure, actual enforcement could harm its economy due to the loss of its own oil exports. Moreover, any notable disruption would likely lead to a considerable spike in freight and insurance rates, adding another layer of complexity to global oil pricing according to India Times and South China Morning Post.