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Sky News AU
7 hours ago
- Business
- Sky News AU
Iran orders closure of Strait of Hormuz - putting one-fifth of world's oil supply at risk
Iran's parliament has voted to close the Strait of Hormuz, the vital shipping channel through which around 20% of the world's daily oil flows. The move, which could block $1 billion in oil shipments per day, is likely to send oil prices soaring. It will come into effect pending a final decision by Iran's Supreme Council. The Supreme Council's decision must be made by tonight, according to Iran's state-run Press TV. Iran's major escalation in response to US strikes on its nuclear facilities 'will be done whenever necessary,' Email Kosari, Commander in the Revolutionary Guards, said on Sunday. The strait connecting the Gulf of Oman with the Persian Gulf is one of the world's most critical chokepoints — just 20 miles wide at its narrowest point. Shipping lanes in the strait — the area that is deep enough for ships to pass — are even narrower at less than two miles wide in each direction, making them much more vulnerable to attacks and threats of closure. The channel is shallow, making it a particular target for underwater mining, while the narrowness of the strait makes passing vessels vulnerable to attack from shore-based missiles or interception by patrol boats or helicopters. 'Iran would most likely pursue a multi-layered asymmetric strategy rather than attempting an outright naval blockade,' Gregg Roman, Executive Director of the Middle East Forum told The Post. 'Their primary approach would involve rapidly deploying naval mines across the shipping lanes—this is their most effective tool for immediate disruption. They'd simultaneously launch anti-ship missiles from mobile coastal batteries like their Ghader and Nasir systems, targeting oil tankers from distances up to [185 miles].' Iran has no legal authority to block sea traffic through Hormuz, and any attempts by its navy to bar entry to the strait would likely be met by a strong response. Ships with the US Fifth Fleet, along with other Western navies, are patrolling the area at all times. It is bordered by Iran to the north and Oman and the United Arab Emirates to the south. The bulk of all oil exported by the regional petro giants, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the UAE, all travel through this narrow waterway. Asia is likely to bear the brunt most from any closures to the waterway, with China, India, Japan and South Korea all getting most of their oil imports through the strait. China, the world's biggest buyer of Iranian oil and a critical partner that has previously used its veto power at the UN Security Council to block sanctions or resolutions against Tehran, would be particularly affected by any closure. The move would also hit Iran's own economy. 'Any closure attempt would be temporary and ultimately self-destructive. Iran depends on the strait for its own vital imports and knows that such action would trigger an overwhelming response from the US 5th Fleet, which maintains detailed operational plans for exactly this scenario,' Roman said. 'It would amount to economic suicide while alienating China, their primary oil customer. Tehran understands this calculus, which is why the threat remains more valuable as leverage than as an actual course of action.' Iran last disrupted traffic in the Persian Gulf in April last year when it seized an Israel-linked container ship near the Strait of Hormuz, accusing the MSC Aries of violating maritime regulations. In April 2023, Iran seized a US-bound tanker, claiming the ship had struck another vessel. And in May 2022, two Greek tankers were held for six months in what was widely seen as retaliation to the confiscation of Iranian oil on a different ship by Greek and US authorities. In previous years, the Houthi militia in Yemen was able to successfully disrupt traffic through the Bab el-Mandeb Strait leading into the Red Sea on the other side of the Arabian Peninsula. Using the firing of missiles and drones, the Houthis were able to cut ship traffic through the Red Sea and the Gulf of Aden some 70% in June compared with the average levels in 2022 and 2023, according to Clarkson Research Services Ltd, a unit of the world's largest shipbroker. Vessel operators have been forced instead to reroute traffic around the southern tip of Africa instead of using the Suez Canal, making journeys for ships traveling between Europe and Asia vastly more expensive and much longer. Iran's Navy was likely to employ the same tactics previously used by the Houthis, along with cyber attacks and other sabotage operations, Roman added. 'The IRGC Navy would execute their proven 'swarm' tactics, using hundreds of small, fast boats armed with missiles and explosives to overwhelm defenses,' he said. 'We'd also see extensive use of suicide drones and explosive-laden unmanned boats, tactics they've perfected through their Houthi proxies in the Red Sea. 'Iran would likely pursue several additional avenues: cyber attacks on port infrastructure and shipping navigation systems, activation of regional proxies to create multiple crisis points and stretch U.S. forces, sabotage operations against Saudi and UAE oil facilities, and potentially targeting Gulf states' desalination plants to pressure them against supporting American operations,' he added. Originally published as Iran orders closure of Strait of Hormuz - putting one-fifth of world's oil supply at risk
International Business Times
9 hours ago
- Business
- International Business Times
Iran Votes to Close Strait of Hormuz that Could Put One-Fifth of World's Oil Supply at Risk and Trigger Sharp Rise in Global Crude Prices
Iran's parliament has voted to close down the Strait of Hormuz, a crucial maritime route that handles around 20 percent of the world's daily oil supply, which could halt around $1 billion worth of oil exports each day and could trigger a sharp rise in global oil prices. The decision will be implemented once it receives final approval from Iran's Supreme Council. The Supreme Council must take a final decision by the end of tonight, Iran's state-run Press TV reported. Email Kosari, a commander in Iran's Revolutionary Guards, said on Sunday that Iran's major escalation in response to the U.S. strikes on its nuclear sites "will be done whenever necessary." Iran to Stop Oil Supply The Strait of Hormuz, which connects the Gulf of Oman to the Persian Gulf, is one of the most strategically important maritime passages in the world — measuring only 20 miles across at its narrowest point. The actual navigable shipping lanes within the strait are even more restricted, with less than two miles of clearance in each direction, making them especially susceptible to attacks or blockades. The strait's shallow depth makes it especially susceptible to underwater mines, while its limited width leaves ships exposed to potential attacks from land-based missiles, patrol boats, or helicopters. Although Iran lacks the legal authority to restrict maritime traffic through the Strait of Hormuz, any attempt by its navy to do so would likely provoke a forceful reaction. The U.S. Fifth Fleet, along with other Western naval forces, maintains a constant presence in the region. The strait is flanked by Iran on the north and bordered by Oman and the United Arab Emirates to the south. A major portion of the oil exported by key producers in the region — including Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE — passes through this narrow and vital passage. Asia to Suffer the Most Asia is likely to suffer the most from any shutdown of the Strait of Hormuz, as countries like China, India, Japan, and South Korea rely heavily on it for the majority of their oil imports. China — the largest buyer of Iranian oil and a key ally that has often used its veto at the UN Security Council to shield Tehran from sanctions or resolutions — would be especially impacted by any closure. At the same time, closing the strait would also deal a serious blow to Iran's own economy. Iran previously disrupted shipping in the Persian Gulf in April last year when it detained a Israel-linked container ship near the Strait of Hormuz, accusing the MSC Aries of breaching maritime laws. Earlier in April 2023, Iran also seized a tanker that was going to the U.S., alleging that it had struck another vessel. In May 2022, two Greek tankers were seized and held for six months — widely interpreted as a retaliatory move following the confiscation of Iranian oil by Greek and U.S. authorities from a separate ship. In earlier incidents, Yemen's Houthi rebels interfered with maritime traffic through the Bab el-Mandeb Strait, which connects to the Red Sea on the opposite side of the Arabian Peninsula. Using missiles and drones, the Houthis managed to cut down shipping activity through the Red Sea and Gulf of Aden by about 70 percent in June compared to the average traffic seen in 2022 and 2023, according to Clarkson Research Services Ltd, a division of the world's largest shipbroking firm.
