A global energy crisis is brewing after Iran’s Parliament passed a resolution to shut down the Strait of Hormuz — a maritime chokepoint critical to global oil and gas flows.
The move follows U.S. airstrikes on three major Iranian nuclear sites — Fordow, Natanz, and Isfahan — sharply escalating regional tensions. While the final call lies with Iran’s Supreme National Security Council, Tehran has made its intentions clear. “No ship will pass through Hormuz without Iran’s permission,” senior Iranian officials declared on Sunday, raising the spectre of a full-scale naval blockade.
Foreign Minister Seyed Abbas Araghchi signalled that Tehran’s response could escalate quickly. “A variety of options are available to Iran,” he said, in an apparent warning to the U.S. and its allies.
Twin Chokepoints: Hormuz and Bab al-Mandab
Compounding the crisis, Yemen’s Houthi rebels have already blocked the Bab al-Mandab Strait — another vital maritime artery linking the Red Sea to the Arabian Sea. With both chokepoints under threat, oil and LNG shipments across the region are faltering.
“The Arabian Sea is now in danger. All shipping in this sea is starting to stop,” maritime security analysts warned.
As previously reported by BharatShakti, the 33-kilometre-wide Strait of Hormuz handles roughly 20 million barrels of oil per day — nearly 20% of global consumption — and a significant share of the world’s liquefied natural gas (LNG), mainly from Qatar. In 2024, the U.S. Energy Information Administration estimated that 84% of crude oil and 83% of LNG passing through Hormuz was bound for Asia, particularly India, China, Japan, and South Korea.
Also Read: India’s Energy Lifeline at Risk as Iran Threatens Hormuz Closure
India Responds: “We’re Prepared”
In response to the mounting crisis, Union Petroleum Minister Hardeep Singh Puri sought to reassure the public.
“We have been monitoring the evolving situation in the Middle East closely,” said Puri. “Under Prime Minister Narendra Modi’s leadership, we’ve significantly diversified our energy sources. A large volume of our imports no longer depend on the Strait of Hormuz.”
He added that oil marketing companies are holding weeks of reserves and that alternative routes from Russia, the U.S., Africa, and Latin America remain operational.
“We will take all necessary steps to ensure stable fuel supplies to our citizens,” he stated.
Still, energy analysts caution that diversification won’t insulate India from price volatility. If Chinese demand for Iranian oil shifts to other suppliers, global prices could spike — putting additional pressure on India’s economy.
Global Fallout
The threat of a Hormuz shutdown is already rippling through global markets. Shipping firms are rerouting vessels and halting shipments, while maritime insurance premiums have surged.
In Washington, U.S. Secretary of State Marco Rubio called on Beijing to intervene. “If (Iran) shuts down the Strait of Hormuz, it will be economic suicide,” Rubio warned. “China depends heavily on that route.”
Though Iran has previously threatened to close the strait — including during the Iran-Iraq War — it has never fully done so. But with military conflict already underway, analysts warn that Tehran’s calculus may have changed. Any closure would hurt Iran’s oil exports, particularly to China, and strain its thawing ties with Gulf neighbours like Saudi Arabia and the UAE.
India’s Strategic Posture
India is likely to bolster its naval presence in the Arabian Sea, possibly coordinating with international partners to secure vital trade lanes. The Indian Navy has long played a stabilizing role in the region and could again escort commercial shipping, especially oil and LNG tankers.
A prolonged disruption would have serious economic implications. With over 80% of its crude oil imported — and approximately 60% of that historically passing through the Strait of Hormuz — India remains vulnerable to global energy shocks. A sustained supply crunch could fuel inflation, pressure the rupee, and worsen the country’s fiscal deficit.
In its latest report, the International Energy Agency (IEA) warned: “Even a temporary closure of Hormuz would severely disrupt global markets. With geopolitical tensions rising, oil supply security remains a top priority on the international energy policy agenda.”
Team BharatShakti