Iranian Parliament Approves Measure to Close Strait of Hormuz Amid Rising Tensions

State TV in Iran has reported that the Iranian parliament has approved a measure to close the Strait of Hormuz, a vital global chokepoint through which approximately 20% of the world’s oil supply passes.

This decision reportedly responds to recent U.S. military strikes on Iranian nuclear facilities, set against the broader Iran-Israel conflict. However, the final authority to implement the closure lies with Iran's Supreme National Security Council, which has not yet issued a formal order.

Potential Global Impact

If enacted, closing the Strait would have major implications for global energy markets, potentially causing oil prices to surge worldwide. The Strait of Hormuz is critical for oil exports from major producers including:

• Saudi Arabia
• Iraq
• United Arab Emirates
• Kuwait
• Qatar
• Iran

Though some countries such as India have diversified their oil supply sources to reduce risk, a closure would still severely disrupt global supply chains, especially affecting Asian markets, which are primary recipients of oil transiting the Strait.