New Delhi: Tehran’s Revolutionary Guard Corps (IRGC) has announced the closure of the Strait of Hormuz. Senior IRGC adviser Brigadier General Ibrahim Jabbari said live on Iranian state television: “The Strait of Hormuz is closed. Whoever dares to pass through, the braves of the IRGC Navy and the Iranian Army will burn those ships to ashes.” This warning came when the US and Israel attacked Iran under ‘Operation Epic Fury’ on February 28, in which Supreme Leader Ayatollah Ali Khamenei was killed.
Why is one-fifth of the world’s oil at stake?
The Strait of Hormuz is just 33 kilometers wide between Oman and Iran and its role in the world’s oil trade is unmatched. About 20 million barrels of crude oil pass through this route every day—a full fifth of the world’s total marine oil supply. From Saudi Arabia to Iraq, Kuwait and UAE, the route for everyone’s oil is from here. When it closed, factories in Asia came to a halt, gas in Europe became expensive and a new storm of inflation broke out across the world.
How many ships ran aground?
At least five tankers have been badly damaged, two people have lost their lives and about 150 ships are stranded around Hormuz. Not a single US, UK, or EU-flagged ship passed through the strait on March 1-2. Shipping giants like Maersk and Hapag-Lloyd have been forced to abandon this route and take a longer detour to Africa’s Cape of Good Hope, adding weeks of time and billions in costs.
What threat did Iran give?
Jabbari gave an even more stark warning that they will also attack oil pipelines, not a single drop of oil will go out of this area. In the coming days, the price of oil will reach $200 per barrel. The oil market has already surged 13 percent, its highest level since January 2025.
What is America’s answer?
The US Army’s Central Command (CENTCOM) claimed that the Strait of Hormuz is still open. But the ground reality says otherwise, ship tracking data shows traffic has fallen by 70 percent, and since March 5, insurance companies have announced withdrawal of security cover.
Why are India and China worried the most?
84 percent of the oil passing through Hormuz goes to Asian markets. China, India, Japan and South Korea together consume 69 percent of the total oil on this route. For India, this crisis is not just of oil but also of inflation and economic stability. Amidst the worsening situation in West Asia, this waterway has become the most dangerous intersection in the world.
What could happen next?
Analysts believe that if tension in the region is not reduced, its impact will not be limited to the Middle East only. It may also have an impact on the energy market, maritime trade and the global economy. At present, the world’s eyes are on the Strait of Hormuz because this sea route is considered the lifeline of global oil supply.
