US warn that Iran is planning to close the Strait of Hormuz. Such a move would significantly disrupt this vital maritime route, essential for the transportation of crude oil and natural gas, and could impose considerable economic stress on nations globally.
Iran is reportedly gearing up to close the Strait of Hormuz in response to recent Israeli airstrikes on its nuclear facilities.
Strait of Hormuz: A Global Lifeline
This strait is very key oil transit connecting the Persian Gulf to the Arabian Sea. It is an extremely narrow waterway, with shipping lanes just a few kilometers wide in each direction. Through this strait passes approximately 20% of the world's oil supply and about a third of its liquefied natural gas (LNG). Any disruption to this vital route has significant repercussions for the global economy, particularly for energy-importing nations like India.
US Alert on Naval Mines in Persian Gulf
According to a report from US intelligence sources, Iranian military forces loaded naval mines onto vessels in the Persian Gulf last month, a development that has caught the attention of US officials. While these mines have yet to be deployed in the strategic waterway, any attempt by Iran to block commercial shipping through Hormuz would likely lead to a dramatic spike in global oil and natural gas prices, given that approximately one-fifth of the world’s maritime oil and gas transport passes through this strait. Following the US airstrikes on Iran’s nuclear sites, which prompted a 10% drop in global oil prices, the market has since stabilized without significant fluctuations, reducing immediate threats to oil trade.
Parliament Approved a Resolution
In the wake of these events, Iran's parliament swiftly approved a resolution to consider closing the strait. However, Iranian state media clarified that the final decision resides with the country’s Supreme National Security Council, emphasizing that such threats have been part of Iran’s rhetoric for years without actual closure occurring.
A White House official commented on the situation, expressing gratitude for the successful execution of Operation Midnight Hammer, which was aimed at curbing the influence of the Houthis, asserting that maritime movement in the Strait of Hormuz continues without disruption. The official also noted a significant weakening of Iran's position.
Vital Waterway to Crude Oil Transport
Key OPEC members, including Saudi Arabia, the UAE, Kuwait, and Iraq, depend on this vital waterway to transport a substantial portion of their crude oil exports to Asian markets. Similar reliance on the strait exists for liquefied natural gas (LNG) exporters like Qatar. Iran, too, counts on the Strait of Hormuz for its crude oil shipments. In terms of military preparedness, the US Defense Intelligence Agency has estimated that Iran had deployed over 5,000 naval mines by 2019, utilizing small, fast boats for this purpose.
In response, the US Fifth Fleet established a presence in Bahrain to deter potential Iranian actions; however, following the recent airstrikes, the US temporarily withdrew its five ships stationed there. Though retaliation from Iran included a missile attack on a US military base near Qatar, there are concerns that Iran may pursue indirect actions, such as closing the Strait of Hormuz through the deployment of naval mines.