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Iran orders closure of Strait of Hormuz — putting one-fifth of world’s oil supply at risk

Iran’s parliament has voted to close the Strait of Hormuz, the vital shipping channel through which around 20% of the world’s daily oil flows.

The move, which could block $1 billion in oil shipments per day, is likely to send oil prices soaring.

Brent crude oil, the international standard, jumped 3.9% to $80 a barrel on Sunday, while US crude rose 4.3% to $77 a barrel.

The conflict between Israel and Iran has sent oil prices yoyoing over the past week, which in turn has caused seesaw moves for the US stock market, because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world’s crude passes.

It will go into effect pending a final decision by Iran’s Supreme Council.

The Supreme Council’s decision must be made by tonight, according to Iran’s state-run Press TV.

Iran’s major escalation in response to US strikes on its nuclear facilities “will be done whenever necessary,” Email Kosari, commander in the Revolutionary Guards, said Sunday.

The strait connecting the Gulf of Oman with the Persian Gulf is one of the world’s most critical chokepoints — just 20 miles wide at its narrowest point.

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