Closure of Strait of Hormuz – One fifth world’s oil supply at risk

Kathmandu – On June 22, 2025, Iran’s parliament approved a non-binding resolution to close the Strait of Hormuz, the narrow waterway through which about 20% of the world’s daily oil and gas exports pass. The decision now awaits final confirmation from Iran’s Supreme National Security Council.

As a market result to it, Oil prices surged as a result. Brent crude jumped approximately 3.9%, reaching around $80/barrel, while U.S. crude rose about 4.3% to $77/barrel. Analysts warn that a closure could add another $3–5 per barrel and potentially push prices to $100–130 if the disruption continues

Global Impact Occurs
Such a move would threaten $1 billion in daily oil shipments, disrupt global energy markets, and elevate geopolitical tensions, prompting international diplomatic efforts, including U.S. calls on China to intervene it with diplomacy.