Is the closure of the Strait of Hormuz pushing the world towards a new global energy crisis, where 20% of oil supplies could be at risk? Has the US-Iran conflict now reached such a dangerous point that the global lifeline of oil, gas and trade will come to a standstill? Will rising crude oil prices start a new era of inflation, rising petrol and electricity bills across the world?
Iran Strait of Hormuz Crisis: The news coming from the Middle East has shaken the whole world. After the US bombing of Iranian military bases, Tehran has hit the weakest nerve of the global economy. Iran’s Islamic Revolutionary Guard Corps (IRGC) has officially announced the complete closure of the world’s most important and sensitive energy corridor ‘Strait of Hormuz’. This direct war between Washington and Tehran has now created the danger of a Global Energy Shock, the heat of which is going to directly reach your budget, the country’s GDP and petrol pumps. The world is currently sitting on a pile of gunpowder, and the question that arises is how long will the global economy be able to withstand this major shock?
Trump’s open threat from the Oval Office and gunpowder night
This latest and most dangerous tension began when the US Air Force carried out heavy airstrikes on Iran’s Kish Island and Bandar Abbas for the second consecutive day. According to Khatam Al-Anbiya Central Headquarters, it is in response to these American attacks that they have decided to seal Hormuz. Amid the tension, US President Donald Trump roared before reporters from the Oval Office: “We will attack them again today with force. We were really close to a nuclear deal, but they continue to harass us.”
According to senior US officials, Trump gave the green signal to this military action to bring Iran to its knees after the crash of an American Apache helicopter and growing frustration in the White House due to stalled talks.
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“Every ship will be blown up…” Iran’s dreadful order at sea!
According to Iran’s Mehr News Agency, the country’s top military command has issued a blunt warning that any commercial ship or oil tanker that dares to pass through this strategic waterway will be considered an ‘enemy target’ and will be directly blown up. Iran has made it clear that now only ships from its ‘friendly countries’ will be allowed to pass through this route. Iranian media has even claimed that two ships trying to violate the shutdown have already been attacked. However, US Central Command (CENTCOM) posted a fact-check on But these contradictory claims of both the countries have created such an environment of uncertainty in the global market due to which traders are trembling.
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Hormuz closed, world in panic! Will the global economy come to a halt due to the oil crisis?
The Strait of Hormuz is not just a shipping lane, but the heartbeat of the global economy. This very narrow sea route between Iran and Oman connects the Persian Gulf to the Arabian Sea. Superpowers like Saudi Arabia, Iraq, Kuwait, UAE and Qatar sell their oil and gas to the world through this route. If this route remains closed for weeks or months, the world will be hit by these 7 devastating economic crises:
- One-fifth of global oil supply stalled: More than 20 million (2 crore) barrels of oil passes through here every day. As soon as the road is closed, there will be an immediate oil famine.
- Crude oil crosses $95: As soon as the news came, Brent crude in the international market immediately increased by 2.47% to $95.40 per barrel and American crude to $92.63 per barrel.
- Many countries may sink into darkness: 20% of the world’s Liquefied Natural Gas (LNG) is supplied from here. Stoppage of this supply from Qatar will create a power crisis in Asia and Europe.
- New global record of inflation: Due to increase in oil prices, transportation and manufacturing costs will skyrocket, making every essential item expensive.
- Food will disappear from the plate: Stoppage of supply of urea and fertilizer in South Asia and Africa will affect farming and pose a direct threat to food security.
- Global Economic Recession: According to the United Nations (UNCTAD), the global growth rate projections for 2026 may completely collapse.
- Crores of jobs in danger: According to the International Labor Organization (ILO), this huge energy shock will increase costs for companies, leading to mass layoffs and poverty in developing countries.
Now the whole world has become hostage between this show of power between Washington and Tehran. The fate of supermarket shelves, your electricity bills and the stock market now hinges on what turn this maritime standoff takes in the coming days.