MercoPress. South Atlantic News Agency

Will Iran block the Strait of Hormuz?

The price of oil is expected to soar amid the escalating conflict

In response to the United States' attack on Saturday, the Iranian Parliament has approved closing the Strait of Hormuz. The decision, which could hinder international trade significantly, particularly that of oil, is awaiting approval from Iran's Supreme National Security Council.

 The strait handles over 80% of global seaborne crude oil, and its closure could reduce global oil supplies by 20-35%, potentially spiking prices to US$200-300 per barrel and causing losses of up to 5 million barrels daily.

“Those with wisdom, who truly understand Iran, its people, and its extensive history, never address this nation with threatening language. Iran will not yield,” Ayatollah Seyyed Ali Khamenei warned last week. “Americans must understand: any military incursion by the United States will inevitably lead to irreversible consequences,” he added.

At the United Nations, China condemned the US strikes, while Iran’s Revolutionary Guard hinted at targeting US assets anywhere.

Western analysts predict that even without a total blockade, the increase in war risk insurance costs would be enough to send global oil and gasoline prices soaring. Oman's territorial waters would remain open to shipping, although this would not avoid the economic impact.

Most multinational companies would be affected within days due to the depletion of energy supplies essential to their operations. Persian Gulf countries, including Qatar and Saudi Arabia, would suffer huge losses in their Gross Domestic Product as exports of liquefied petroleum gas would be halted.

Meanwhile, US Defense Secretary Pete Hegseth insisted that Saturday's mission was “not about regime change” in Tehran.