Iraqi economist Hilal al-Taan warned that a Strait of Hormuz closure could spark a major Gulf crisis. The region relies heavily on this narrow passage for energy exports. Therefore, any disruption may freeze Gulf activity and shock global oil markets.
Al-Taan emphasized that the strait’s shutdown would severely restrict maritime traffic. This would block oil exports and sharply increase shipping and insurance costs. As a result, vital ports like Jebel Ali in the UAE would face major disruptions.
Moreover, oil-reliant countries like Iraq, Kuwait, and Bahrain would suffer immediate financial pain. These economies depend on the safe transit of oil and gas through this critical passage. Thus, the Strait of Hormuz closure could damage their fiscal health.
In fact, nearly 20% of global oil and fuel shipments travel through this waterway daily. Additionally, around 11 billion cubic feet of liquefied natural gas flow through it each day. Because of this massive volume, any blockade would destabilize the global energy supply.
The warning came after Iranian lawmaker Esmail Kowsari threatened decisive action. He hinted that Iran may close the strait in response to Israeli military operations. According to Kowsari, Tehran continues to review the situation closely and stands ready to act.
Tensions remain high in the region, pushing fears of escalation further. Gulf nations, global investors, and energy importers are watching closely. They worry that conflict could choke a vital lifeline of the global energy system.
At the same time, Iraq and other Gulf states are urging calm and diplomatic solutions. They understand that stability in the Strait of Hormuz ensures energy flow and economic survival. Any move to block the route would impact millions across the world.
Meanwhile, Strait of Hormuz closure experts urge international cooperation to prevent a crisis. Ensuring free movement in the Strait of Hormuz remains a top priority. Otherwise, the world may face supply shocks and soaring oil prices.