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Strait of Hormuz at Risk: What If Iran Closes the Global Oil Corridor?

What’s the Strait of Hormuz—and Why It Matters? A narrow 21–33 km passage between Iran and Oman, the Strait of Hormuz links the Persian Gulf to the Gulf of Oman—serving as the single largest marine oil export route, carrying about 20 million barrels per day (≈ 20% of global seaborne oil and ~25% of LNG). Nations like Saudi Arabia, UAE, Kuwait, Iraq, Qatar, and especially Iran rely on this corridor for energy exports. What If Iran Closes the Strait? 1. Oil Prices Skyrocket Analysts warn Brent crude could surge above $100–150/barrel, potentially triggering a global inflation shock . Even speculation could lift prices by $4–5/barel, moving Brent past $80—up from ~$77 before recent strikes. 2. Global Economic Fallout Increased fuel prices drive up inflation, shipping costs, and squeeze developing economies. Central banks like the U.S. Fed may delay rate cuts, slowing economic […]

Ahmad June 23, 2025