Recently, tensions in the region increased after U.S. strikes on Iranian nuclear facilities, prompting Iran to threaten blocking the strait. If Iran were to close it, global oil supply chains could be severely disrupted, potentially causing oil prices to surge and triggering worldwide economic consequences.
Countries like India would be particularly affected because a large share of their oil and LNG imports pass through the Strait of Hormuz. Higher oil prices could lead to increased fuel costs, transportation expenses, and inflation. However, completely closing the strait would also harm Iran’s own exports and could provoke strong international military and economic responses, making a full blockade unlikely but still a serious geopolitical risk.
