The Iranian parliament has approved the closure of the Strait of Hormuz
How important is this strait?
The Strait of Hormuz is the world's major oil transportation choke point. About 20-30% of the global oil consumption passes through this strait every day.
It connects the Persian Gulf (home to major oil producers such as Saudi Arabia, Iran, Iraq, Kuwait, UAE, Qatar, and Bahrain) with the Arabian Sea and then to international shipping routes.
If closed, this major oil supply will be disrupted, causing a significant shock to the global oil market.
The closure of this strait is considered an act of war or extremely provocative.
Major oil-importing countries like China, India, Japan, South Korea, and European nations will suffer the most, as finding completely alternative partners is incredibly difficult!
Iranian officials have prepared for a conflict lasting at least 6 months. Everything has been planned in advance.
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