Iran’s Bold Move: Hormuz Strait Blockade – A Potential Global Crisis
On June 22, Iran’s parliament made a shocking move—approving a blockade of the Strait of Hormuz, a critical oil passage. This decision, set against the backdrop of escalating tensions with the U.S. over airstrikes on its nuclear sites, has the potential to send shockwaves through global markets.
The Strait, only 33 km wide at its narrowest point, is the lifeblood of the world’s oil trade. 25% of the world’s oil and 20% of LNG flow through it. Iran controls the route, as most massive oil tankers are forced to pass through Iranian waters due to its shallow depth.
If Iran goes through with the blockade, global oil prices will surge. This could trigger a financial earthquake worldwide. While similar threats were made in the past, this is the first time Iran could actually shut down this vital artery.
The world is watching. Will Iran take the final step? And if they do, how will the world respond?