Iran's closure of the Strait of Hormuz: What this means for Africa

Business Insider

5 hours ago

Following deadly U.S. strikes on key military sites in Iran, the Iranian Parliament has voted to block the Strait of Hormuz—one of the world's most critical maritime trade routes, through which roughly 20% of global oil supply flows.
Iran's Parliament has voted to block the Strait of Hormuz, a key global oil passage, escalating geopolitical tensions.
Closure of the waterway is expected to cause a sharp increase in global oil prices and disrupt trade routes.
African countries dependent on Gulf oil imports face potential economic instability due to rising fuel costs and inflation.
While the decision to close the Strait of Hormuz awaits final approval by Iran's Supreme National Security Council, state broadcaster Press TV confirmed that the parliamentary vote to close the strait has already been passed.
The move has heightened fears of a sharp spike in global energy prices and deepened geopolitical tensions, with Washington reportedly urging Beijing to intervene and help prevent escalation.
The Strait of Hormuz is a narrow but strategically vital waterway connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. Bordered by Iran to the north and Oman and the UAE to the south, the strait is just 50 kilometers (31 miles) wide at its broadest point, narrowing to about 33 kilometers.
Despite its size, it is deep enough to accommodate the world's largest oil tankers and is a lifeline for global energy flows.
According to the U.S. Energy Information Administration, about 20 million barrels of oil—worth nearly $600 billion annually—passed through the Strait of Hormuz daily in early 2023. This includes exports from Iran, Saudi Arabia, Iraq, Kuwait, Qatar, and the UAE.
While Iran aims to gain geopolitical leverage, analysts warn it may suffer most, as it also depends on the strait for vital energy exports. CNBC notes experts have criticized the move as self-damaging.
For Africa, the closure could trigger inflation, disrupt trade, and strain political and economic stability, given the continent's reliance on imported refined fuel and exposure to global oil price shocks.
Oil import disruptions loom for Africa
The most immediate impact on Africa is economic. Many African nations, such as South Africa, Nigeria, and Kenya, rely heavily on affordable oil imports from Gulf producers like Saudi Arabia, the United Arab Emirates, and Qatar.
For instance, Kenya recently renewed its fuel import deal with three Gulf state-owned firms—Saudi Aramco, Emirates National Oil, and Abu Dhabi National Oil—for another two years.
According to the U.S. Energy Information Administration (EIA), the volume of crude oil and petroleum products shipped through the Strait of Hormuz in the first quarter of 2025 was recorded as follows:
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A closure of the Strait of Hormuz would severely disrupt global oil flows, with Goldman Sachs projecting a $10 rise in crude prices.
For African economies already struggling with inflation, currency depreciation, and debt, the impact could be harsh, fuel and transport costs would spike, worsening food inflation and social tensions.
Shipping disruptions have already begun, with at least two supertankers making U-turns near the strait following U.S. strikes on Iran.
Amid confusion and rising fears over Iran's threats, some Gulf countries like Saudi Arabia have taken steps to mitigate the potential impact.
According to a report by the U.S. Energy Information Administration (EIA), Saudi Arabia has activated its East–West pipeline, a 1,200-kilometre line capable of transporting up to 5 million barrels of crude oil per day, providing an alternative export route that bypasses the Strait of Hormuz.
Reuters reports that supertanker rates have more than doubled in a week, now exceeding $60,000 per day. Even oil exporters like Nigeria and Angola could be hit hard, as their revenues are tied to volatile Brent crude prices and vulnerable shipping lanes.
Business Insider Africa spoke with Omono Okonwo, Energy Analyst and Communications Director at DEER Nigeria, to discuss the potential implications of a closure of the Strait of Hormuz.
According to Okonwo,"If the Strait of Hormuz closes, the global oil market would face immediate and severe disruption."
She noted that oil prices could spike, potentially doubling within days, fueling inflation.
"Short-term effects would see oil prices surge dramatically - potentially doubling within days... Long-term, such a crisis could serve as the catalyst the continent needs to finally prioritize domestic refining capacity and energy infrastructure development, reducing our dependence on imported fuels and creating a more resilient energy sector." Okonwo added.
Politically, Iran's action places African countries in a difficult position, as many maintain close ties with both Gulf states and the United States.