Closure of the Strait of Hormuz by Iran

Iran's Parliament, the Majlis, has reportedly approved the closure of the Strait of Hormuz in response to U.S. attacks on Iranian nuclear facilities. This decision, however, awaits final approval from Iran’s Supreme National Security Council.

Significance of the Strait of Hormuz

• The Strait connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
• It is one of the world’s most crucial oil trade routes.
• In 2024, about 20% of global liquid petroleum passed through this strait, with similar trends in early 2025.

Impact on India

• India imports about 80% of its oil requirements, making it susceptible to disruptions in the Strait.
• The Strait is also essential for India's trade routes.
• Despite this, Petroleum Minister emphasized that India has diversified its oil supply sources.
• India’s oil marketing companies have several weeks of supply and receive energy via multiple routes.

Potential Consequences

• Disruptions could increase shipping costs by 40-50%.
• Shipping times could rise by 15-20 days.