The Iranian parliament has voted to close the Strait of Hormuz following U.S. airstrikes on Iranian nuclear facilities, raising global alarm over potential disruptions to critical energy supplies. The Strait, responsible for nearly 20% of the world’s oil and a major conduit for liquefied natural gas (LNG), is a vital chokepoint in the global energy system. Iran’s move, though not final without approval from its Supreme National Security Council, signals a major escalation and could drive energy prices sharply upward. With Qatar among the world’s top LNG exporters relying on the Strait, any closure would immediately affect Asian and European markets, where LNG infrastructure is less adaptable than oil. Global markets could see oil prices surge beyond $90 a barrel, and LNG spot prices may spike to 2022 levels.

In addition to higher prices, shipping and insurance markets would face severe disruption, possibly halting tanker traffic and increasing war-risk premiums. Nations like Japan, India, and South Korea may need to tap into strategic reserves to avoid shortfalls. Broader economic consequences include renewed global inflation and pressure on central banks, particularly in emerging economies. The crisis could also accelerate energy diversification, spurring investments in renewables, nuclear, and alternate LNG routes. While the Strait has never been fully closed—even during the Iran–Iraq War—this threat is being taken seriously due to its global ramifications. Past Iranian threats in 2011 and 2019 similarly roiled markets, but the current geopolitical climate adds urgency. For now, the world watches closely as tensions escalate in this crucial maritime corridor.