Amid rising tensions with Israel, Iran is reportedly considering the closure of the Strait of Hormuz — a vital waterway for the global oil and gas trade. This narrow passage is responsible for the daily movement of around 20 million barrels of crude oil and about one-third of global liquefied natural gas (LNG) shipments. That represents nearly 20% of the world’s oil consumption.
Experts say that even a temporary shutdown of the strait could cause major disruptions to global energy markets, leading to price spikes and supply delays. The Strait of Hormuz is mostly controlled by Iran, making it a key point of influence in global geopolitics.
Countries like India are particularly vulnerable. India depends on the strait for about 70% of its crude oil imports and 40% of its LNG needs. Any interruption could impact its energy security and increase costs for consumers.
India’s Oil Minister has assured that the country has sufficient energy reserves and will begin daily monitoring of global oil supplies to protect against international market volatility and maintain stable energy access for the nation.
Donald Trump issued a strong warning on social media, saying Iran should have accepted the deal he offered. He firmly stated, “IRAN CANNOT HAVE A NUCLEAR WEAPON” and urged “everyone to immediately evacuate Tehran.”
A $10 increase in oil prices could reduce U.S. GDP by 0.4% and push inflation up by 0.35%, according to the Federal Reserve’s model. When combined with tariffs and immigration restrictions, it adds to stagflation pressures—creating a serious challenge for the Fed before its upcoming policy meeting.
This development adds to growing concerns in global markets as tensions in the Middle East continue to escalate.
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