Tehran has warned that it could take the unprecedented step of closing the Strait of Hormuz, the world’s most vital oil corridor linking the Persian Gulf to the Arabian Sea, after the US bombed three key Iranian nuclear sites amid its escalating conflict with Israel. If Iran chooses this option to put pressure on its opponents, it will have a significant impact on global and regional levels, including India’s energy security.
Its closure would immediately reduce global supply, leading to a surge in prices as about 30 per cent of global oil exports and a third of the world’s LNG (liquefied natural gas) passes through the narrow waterway every day. The closure of this waterway between Oman and Iran could jeopardise the shipping of about 18 million barrels of oil and other fuels per day. It is noteworthy that Iran has threatened to close the Strait of Hormuz several times.
But it has never done so as it depends on the waterway for most of its crude exports along with other members of the Organization of Petroleum Exporting Countries (OPEC) such as Saudi Arabia, the United Arab Emirates, Kuwait and Iraq. If Iran carries out its threat this time in the wake of the US attack, India will also suffer losses as around 40 per cent of its imported oil and more than 50 per cent of liquefied natural gas (LNG) passes through this route.
Qatar alone accounts for nearly 80 per cent of India’s LNG imports and a significant portion also comes from the UAE. Both countries depend on the Strait of Hormuz for shipping the fuel. The Strait and Iran’s pressure on its adversaries The width of the Strait is approximately 33 km at its narrowest point, while the shipping lane is just 3 km wide, making it extremely vulnerable. Iran sees the strait as a means to pressure its opponents. Due to the geographical location of the waterway and Iran’s control over key islands such as Qeshm and Hengam, Tehran can also close it.