Experts have issued a dire warning about oil prices after Iran’s parliament voted to close the Strait of Hormuz.
Specifically, the stunning decision threatens to cut off one-fifth of the world’s oil supply and send gas prices soaring.
The radical Islamic regime’s latest provocation follows U.S. strikes on Iranian nuclear facilities.
Iran’s parliament approved a measure to close the Strait of Hormuz, a critical global oil chokepoint, after U.S. strikes targeted three Iranian nuclear sites.
The strategic waterway serves as a passage for about 20% of the world’s daily oil movements and 25% of all seaborne oil trade, making it vital to global energy security.
While the vote signals Iran’s aggressive intentions, it is important to note that parliament lacks the actual authority to implement such a blockade.
The final decision rests with Iran’s Supreme National Security Council, as confirmed by Major General Esmaeil Kosari, a member of the parliament’s National Security Committee and Commander in the Revolutionary Guards.
The economic implications of this threat are substantial. The strait allows the movement of oil shipments worth about $1 billion daily.
Any disruption would immediately impact global oil prices, potentially sending them skyward from their current levels per barrel.
“Without diplomatic concessions from Tehran, the front-month Brent crude oil price could open ‘meaningfully above its $77.01/bbl Friday close,'” ClearView Energy Partners said.
For American consumers, this would mean even higher prices at the pump. The timing could not be worse, with summer driving season underway and the economic recovery still fragile.
Military experts believe Iran’s navy might employ tactics similar to those used by the Iran-backed Houthi terrorists, including swarm tactics with small boats, cyber attacks, and sabotage operations.
Iran may deploy naval mines and anti-ship missiles as part of what one expert called a “multi-layered asymmetric strategy.”
“Iran’s major escalation in response to US strikes on its nuclear facilities will be done whenever necessary,” Kosari added.
However, many security analysts doubt Iran will follow through with completely closing the strait.
Eurasia Group analysts note, “a move to close Hormuz would be an effective declaration of war against the Gulf states and the US” and that “Iran in its weakened state is unlikely to seek escalation of that kind at this time.”
The United States maintains a significant military presence in the region through the 5th Fleet, which has detailed operational plans for responding to any Iranian attempt to close the strait.
This American military deterrent remains one of the few factors preventing Iran from taking more drastic actions.
The threat to global energy security underscores the importance of American energy independence.
As tensions continue to escalate in the Middle East, Americans are once again reminded of how rogue regimes attempt to undermine global operations.
