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Iran threatens to shut down Hormuz, oil prices likely to surge

Web Desk by Web Desk
22 June 2025, 10:59 am
in Latest, World
0
Iran Cracks Down After 12-Day War

Iran Cracks Down After 12-Day War

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Following recent U.S. airstrikes targeting Iran’s nuclear infrastructure, Iran issued a stark warning on Monday, threatening to shut down the Strait of Hormuz — a crucial maritime route for global oil and gas trade.

Brigadier General Alireza Tangsiri, head of the Islamic Revolutionary Guard Corps (IRGC) Navy, declared that the narrow but strategically vital passage “will be closed within hours,” cautioning that continued violations of Iran’s sovereignty would have severe consequences for global commerce and energy supply chains.

“If hostile actions against our sovereignty persist, Iran will completely close the Strait of Hormuz,” General Tangsiri said in a nationally broadcast statement. “We will not tolerate any encroachment on our territorial integrity without decisive retaliation.”

The Strait of Hormuz links the Persian Gulf with the Gulf of Oman and remains one of the world’s most essential energy transit routes. Although just 21 to 52 nautical miles across, it is responsible for nearly a quarter of the planet’s oil transportation and a third of all liquefied natural gas (LNG) shipments. Any obstruction in this corridor is expected to send shockwaves through global energy markets.

Countries such as Saudi Arabia, Iran, Iraq, the UAE, and Qatar rely heavily on this route to export oil and gas, primarily to major Asian markets like China, India, Japan, South Korea, and Singapore — destinations that account for 76% of the region’s energy exports.

The global energy market responded swiftly to the threat. Brent crude prices surged over 6% in early Asian trading, and WTI crude also experienced a notable jump, fueled by fears of disrupted supply lines and maritime transport challenges.

Energy experts cautioned that a sustained closure of the strait could push crude oil prices well above $100 per barrel, significantly impact global logistics, and escalate tensions among key world powers.

“This situation has moved far beyond a regional dispute — it now poses a serious threat to the global economy,” noted Dr. Noura Hadad, an energy policy analyst at the Institute of Strategic Studies in London. “Even the suggestion of closure shakes investor confidence. If it actually happens, we could witness one of the most severe energy shocks in recent history.”

While the United States has yet to issue an official response, reports indicate that the Pentagon has raised the alert level for naval forces stationed in the region.

Tags: HormuzIranIsrael
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