Will Iran Close the Hormuz Strait After Israeli Attack? | Oil Supply at Risk

Will Iran Close the Hormuz Strait After Israeli Attack? | Oil Supply at Risk

 On 13th June, after the Israeli attack on Iran, there were fears that the Hormuz Strait might be closed. This route is very important for gas and oil supply across the world.

A strait is a narrow waterway that connects two big water bodies like seas or oceans. The Hormuz Strait connects oil-rich countries of the Middle East to Asia, Europe, North America, and other parts of the world. But this area has been troubled for many years.

The Hormuz Strait is between the Persian Gulf and the Gulf of Oman. It lies between the sea borders of Iran and Oman. This waterway is very narrow — in one part it is only 33 kilometers wide. Its importance can be seen from the fact that oil exported from Saudi Arabia, UAE, Kuwait, and Iran passes through this strait. Also, the highest amount of Liquefied Natural Gas (LNG) is exported through this route.

From 1980 to 1988, during the Iran-Iraq war, both countries tried to stop each other's oil supply in this strait. In that fight, attacks were made on commercial oil tankers, and it had a big effect on global energy supply.

It is believed that if Iran closes the Hormuz Strait, about 20% of the world’s oil supply could be affected. In June, global financial group JP Morgan gave a warning that in such a situation, crude oil prices might increase a lot.

In a talk with BBC Turkish, Professor Dr. Akt Langer said that just the fear of Hormuz Strait closing has already started to affect global oil prices. He said that the markets are already thinking about this risk.

However, after the Israeli attack, Iran clearly said that its oil supply was not affected. A statement from the Oil Ministry said that oil storage centers and refineries were not targeted in the attacks.

This is not the first time the Hormuz Strait has been in news for such conflict. Let’s look at some similar events.

In 1988, an American fighter jet shot down an Iranian passenger plane. 290 people died. The US said it was a mistake, but Iran called it a planned attack.

In 2012, when the US and Europe put economic sanctions on Iran, Iran threatened to close the Hormuz Strait. Iran said that these sanctions were stopping its income from oil exports.

In 2018, when the US tried to bring Iran’s oil export to zero, Iran’s President Hassan Rouhani gave a signal that Iran could stop the oil supply passing through the strait. Iran's Revolutionary Guard also gave similar warnings.