Iran is reportedly weighing the option to shut down the Strait of Hormuz — a critical oil shipping route, following recent US airstrikes on three of its nuclear sites, according to Iranian media.

The situation has raised concerns across global energy markets, as the Strait of Hormuz plays a major role in transporting oil and gas from the Gulf region to the rest of the world.

Why is the Strait of Hormuz important?

The Strait of Hormuz is one of the most important maritime passages for supplying energy worldwide. It links the Persian Gulf with the Arabian Sea and the Indian Ocean, and is used to move nearly 20% of the world’s oil and gas supply.

Although the entire strait is about 33 km wide at its narrowest point, actual shipping lanes are just 3 km wide in each direction. This makes the area particularly sensitive to threats, blockades, or military activity.

The waterway is especially crucial for countries like Saudi Arabia, Iraq, the UAE, Qatar, Iran, and Kuwait, whose oil exports must pass through this narrow channel.

In the past, Western countries such as the US and those in Europe were most vulnerable to any disruption in oil flow through the Strait. Today, however, it is mostly Asian countries, especially China, that would be hit hardest if the route is closed.

Iran's Parliament approves closure of Strait of Hormuz after US strikes on nuclear sites

India's energy imports and the Strait

India imports about 5.5 million barrels of crude oil every day. Out of this, nearly 2 million barrels come through the Strait of Hormuz. While this may seem like a major concern, Indian officials and industry experts believe the country is well-prepared.

Thanks to diversified oil sources, including Russia, the US, and Brazil, India can tap into alternative supply routes that don’t rely on the Strait. Russian oil, for instance, travels via the Suez Canal, around the Cape of Good Hope, or across the Pacific Ocean.

When it comes to gas, India sources most of its liquefied natural gas (LNG) from countries like Qatar, Australia, Russia, and the US. These suppliers do not rely on the Strait of Hormuz for transporting LNG, so any shutdown is unlikely to affect gas deliveries to India.

Even if India’s supply remains stable, experts say global oil prices could still see an immediate impact. The tensions in the Gulf region may push oil prices to around $80 per barrel in the short term, analysts warned.

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