Iran Closes Hormuz: Transport and Oil Crises Erupt

Strait of Hormuz ( Source: Baird Maritime)

A senior official of Iran's Islamic Revolutionary Guard Corps (IRGC) delivered a shocking statement on Monday: The Strait of Hormuz is now closed, and Iran will fire upon any ship attempting to pass through. This information was immediately and widely broadcast by Iranian state media.

This is considered the clearest and sternest warning from Iran since they notified vessels about the closure of this vital export route last Saturday. This move threatens to directly choke off one-fifth of global oil flows and is forecast to send crude prices skyrocketing.

Speaking on state media, Ebrahim Jabari, Senior Advisor to the Commander-in-Chief of the IRGC, issued a fierce declaration: "The strait (of Hormuz) is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze,"

The Trigger of the Crisis

The Strait of Hormuz is the world's most vital oil export route, serving as the critical link connecting the largest Gulf oil producers - including Saudi Arabia, Iran, Iraq, and the United Arab Emirates (UAE) - to the Gulf of Oman and the Arabian Sea.

This blockade decision is a direct response to the US and Israeli airstrikes on Iran on February 28 aimed at toppling the country's leadership, coupled with US President Donald Trump offering to support the Iranian people in overthrowing the ruling clerics.

In retaliation, Iran has fired multiple barrages of missiles at neighboring countries in the Persian Gulf hosting US military bases, including Qatar, Kuwait, and Bahrain. Tehran has also launched missiles at the UAE, Saudi Arabia, and Oman.

Dual Impact on Global Supply Chains

With this de facto blockade, Tehran has turned years of threats into concrete action - choking off the narrow waterway in retaliation for any attacks against the Islamic Republic.

It is worth noting that approximately 20% of the world's daily oil consumption must pass through the Strait of Hormuz, which is only about 33 km (21 miles) wide at its narrowest point. Oil markets are currently laser-focused on the tensions between Tehran and its long-standing adversaries, the US and Israel, with extreme fears that a full-scale conflict will disrupt supply and destabilize the entire region.

More severely, this move comes at a time when global shipping is already suffering heavy disruptions linked to missile and drone attacks by the Iran-backed Houthi forces in Yemen. This group has continuously targeted commercial vessels in the Red Sea and the Gulf of Aden since the Gaza war erupted in 2023.

The paralysis of both arterial maritime routes (the Red Sea and the Strait of Hormuz) places the global logistics industry before a rerouting and cost challenge unprecedented in modern history.

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Source: Phaata.com (According to Baird Maritime)

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