Iranian Parliament votes to close vital Strait of Hormuz after U.S. strikes on nuclear sites
Iran's Parliament, the Majlis, has reportedly approved the closure of the Strait of Hormuz in response to the attacks by the US on Iranian nuclear facilities, the country's state-owned media PressTV reported on Sunday, citing Esmaeil Kowsari, a member of the Majlis.
U.S. strikes Iranian nuclear facilities updates on June 22, 2025
According to the report, the final decision on the closure of the Strait of Hormuz lies with Iran's Supreme National Security Council. The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, and is one of the world's most important oil trade routes.
According to the U.S. Energy Information Administration, about 20% of global liquid petroleum travelled through the Strait of Hormuz in 2024, with the trend continuing in the first quarter of 2025.
India imports about 80% of its oil requirement, meaning that disruptions in the Strait of Hormuz will likely impact the price of oil that India purchases. The Strait of Hormuz is also a vital trade route for ships travelling to and from India.
Soon after Israel attacked Iran, The Hindu reported on June 13 that disruptions in the Strait of Hormuz would lead to a 40-50% increase in shipping costs and a 15-20 day increase in shipping times.
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Hindustan Times
12 minutes ago
- Hindustan Times
Oil supply via Strait of Hormuz unlikely to be hit despite Iran-Israel war
Amid the ongoing conflict in the Middle East and rising crude oil prices, energy experts have said that oil supply through the Strait of Hormuz is unlikely to be immediately affected, though risks remain if tensions escalate further. India and global markets remain watchful, hoping that the vital Strait of Hormuz stays open.(AFP) Industry experts, in conversations with ANI, stated that the situation in the region remains tense after the recent US action against Iran, but the general hope is that oil supply routes will stay open. MK Surana, former chairman of Hindustan Petroleum Corporation Limited (HPCL), told ANI, "India has done well to diversify its supply sources in the last few years, and our dependency on Straits of Hormuz and supply from the Middle East is lesser now than what it was earlier. But any disruption in the Straits and Middle East supply will definitely affect crude oil prices globally. Therefore, for India, pricing is a bigger concern than the availability." Surana added that immediately, there is unlikely to be any disruption in supply through the Strait of Hormuz. "Post US action on Sunday in Iran, the situation is of an uneasy calm awaiting Iranian response. General understanding and hope is that the supply chain through the Straits of Hormuz will not get blocked in reality and Iran will not precipitate actions that will damage any oil infrastructure in the neighbouring countries," he said. However, "Despite a looming threat, till these two situations hold, the crude oil prices are unlikely to go above the USD 80 range, though there may be occasional spikes depending on news flow. But if any of the two situations happens in reality, the crude prices will rise sharply," noted the ex-HPCL Chairman. Surana explained that fundamentally, based on supply-demand projections and without the current geopolitical tensions, crude oil prices would be in the range of USD 60 to 65 per barrel. Prominent energy expert Narendra Taneja echoed similar views. He told ANI, "The Strait of Hormuz has never ever been closed or blocked in history. It will be a major escalation if there is any attempt on the part of Iran to close the Strait. The US would most likely respond militarily and not let Iran block it. Major oil exporters Saudi Arabia, Kuwait, and Iraq would also protest. Big importers like China and India would protest." On the impact on India, Taneja stated, "Almost 39 per cent of our oil import tankers pass through the Strait of Hormuz. So, the impact on India would be there, but our biggest worry is the price, not the supply or availability. If Iran is allowed to succeed in blocking the Strait, oil prices may go up to USD 150 per barrel." Madan Sabnavis, Chief Economist of Bank of Baroda, said, "A 10 per cent increase may not have much of an impact on the economy where the fundamentals are robust. But if it is over USD 100 for a prolonged period of time, it would mean virtually a 25 per cent increase over the base case assumption and can have a major impact on these variables." He added that the impact on GDP will depend mainly on how inflation behaves and how it affects consumption. Ajay Srivastava of Global Trade and Research Initiative (GTRI) highlighted India's vulnerability, stating, "India is especially vulnerable to a possible Strait of Hormuz closure. Nearly two-thirds of its crude oil and half of its LNG imports transit this route. Any closure could send oil prices soaring, sharply inflating India's import bill, worsening inflation, and putting pressure on the country's fiscal position." "The Strait, which carries nearly 25 per cent of global oil shipments and significant LNG volumes, remains open for now. The parliamentary vote is not binding; a final decision rests with Iran's Supreme National Security Council, which is still deliberating. While no closure has been enacted yet, the risk of disruption looms amid escalating U.S.-Iran tensions," he noted further. Meanwhile, Union Petroleum Minister Hardeep Singh Puri, while speaking with ANI, assured that India is prepared for such risks. He said, "We had diversified the sources of supply. Out of the 5.5 million barrels of crude oil that India consumes daily, about 1.5 to 2 million come through the Straits of Hormuz. We import roughly 4 million barrels through other routes." Puri added, "Our oil marketing companies have enough stocks. Most of them have stocks up to three weeks. One of them has 25 days' stock. We can increase the supply of crude through other routes. We are in touch with all possible actors." As tensions in the Middle East continue, India and global markets remain watchful, hoping that the vital Strait of Hormuz stays open and uninterrupted to avoid a sharp rise in crude oil prices.
Time of India
12 minutes ago
- Time of India
Iran-Israel war: Iran's Fordo nuclear site hit again in Israeli strike; Israel says attack aimed to block access routes to enrichment facility
This satellite image provided by Maxar Technologies shows the Fordo enrichment facility in Iran before US strike. (AP) Iran's underground nuclear enrichment site at Fordo was struck again on Monday, Iranian state television reported, a day after the United States bombed the facility using heavy bunker-buster bombs in a major escalation of the ongoing conflict. Israel confirms Monday strike, says aim was to block access The Israeli military confirmed on Monday that it launched air raids to 'obstruct access routes' to the Fordo facility, stating that the strike was intended to cut off movement around the enrichment site. 'Israeli forces struck in order to obstruct access routes to the Fordo enrichment site,' the military said. US President Donald Trump had earlier said the Fordo site had been 'totally obliterated' in Sunday's US strike. IAEA: 'Very significant damage' likely at Fordo In Vienna, Rafael Grossi, head of the International Atomic Energy Agency (IAEA), said Sunday's attack likely caused heavy destruction at the sensitive facility. 'Given the explosive payload utilized and the extreme vibration-sensitive nature of centrifuges, very significant damage is expected to have occurred,' Grossi noted. He added that the IAEA has yet to fully assess the underground impact. US describes strike as one-off; Iran warns of retaliation The US described its Sunday strike on Fordo, Natanz, and Isfahan as a one-time operation to damage Iran's nuclear infrastructure. However, President Trump warned that more strikes could follow if Iran retaliates. Iran condemned the attack as a violation of its sovereignty and likened it to an invasion. Iran fires back with Operation 'True Promise 3' On Monday, Iran responded by launching missiles and drones toward Israel, targeting cities such as Haifa and Tel Aviv. Explosions were also heard in Jerusalem. Iranian state television said the barrage was part of a new wave under 'Operation True Promise 3.' Israel activated its defence systems and advised residents in northern and central areas to take shelter. Iranian general warns US of consequences Iranian General Abdolrahim Mousavi, chief of the joint staff, warned that the US airstrikes had given Iranian forces a 'free hand' to act against American interests and forces in the region. Tens of thousands of US troops are stationed across the Middle East, many within range of Iran's short-range missiles. Global leaders urge de-escalation Amid rising tensions, global calls for restraint have grown. European Union foreign policy chief Kaja Kallas urged a return to diplomacy and warned that Iran's potential closure of the Strait of Hormuz, a key oil shipping route, would be 'extremely dangerous.' The EU said Iran must be ready to return to direct talks with the US to help resolve the crisis. Iran's nuclear program in focus after 2015 deal collapse The conflict comes against the backdrop of the collapse of the 2015 nuclear agreement. After the US withdrew from the deal during Trump's first term, Iran began enriching uranium up to 60% purity and restricted access to international inspectors. On Monday, Iran's Foreign Minister Abbas Araghchi held talks in Moscow with Russian President Vladimir Putin, a key Iranian ally.
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Business Standard
13 minutes ago
- Business Standard
Rupee slips 16 paise as West Asia tensions flare up; ends at 86.74/$
The Indian rupee fell after a day of advance as the US strikes at nuclear sites in Iran triggered a risk-off sentiment among investors. The domestic currency depreciated 16 paise to end at 86.74 against the dollar, after closing at 86.59 on Friday, according to Bloomberg. The currency has fallen 1.32 per cent so far this month. Rupee traded weak as the dollar index appreciated toward the 99 mark, indicating broader currency market imbalances, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. Geopolitical tensions escalated after the US conducted airstrikes on three nuclear-related sites in Iran, raising volatility across global markets, he said. Iran's Parliament has reportedly approved the closure of the Strait of Hormuz after the US struck three nuclear sites over the weekend. US President Donald Trump declared the three facilities 'totally obliterated,' and warned of greater attacks unless Iran makes peace with Israel. Crude oil prices pared gains after it rose as much as 5.7 per cent during the session. Brent crude price was up 0.25 per cent at $77.20 per barrel, while WTI crude prices were higher by 0.28 per cent at 74.05, as of 3:30 PM IST. Despite India's reliance on Iranian oil, it has diversified its sourcing from Russia and the US, reducing its dependence on the Gulf, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "However, higher oil prices could impact the current account, potentially weakening the rupee slightly. " The Reserve Bank of India (RBI) is likely to intervene to maintain market stability, and its forex reserves have reached $698 billion, nearing the all-time high of $705 billion, providing an ample buffer, Bhansali said. Meanwhile, after depreciating 1.29 per cent against the dollar this financial year, the rupee is expected to weaken more because of West Asian military conflicts, with the expectation that prices of crude oil will rise. According to a Business Standard poll, the majority of the respondents expect the rupee to depreciate to 87 a dollar by the end of July.
