Let's dive right into the heart of a critical issue facing the global economy today—the potential closure of the Strait of Hormuz. This narrow waterway, stretching just 20 miles at its narrowest point, serves as a vital artery for the world's energy supply. With approximately 20 million barrels of oil passing through it every single day, the Strait of Hormuz is indispensable, accounting for nearly 20% of global oil consumption.
Now, why is this relevant right now? Recently, tensions have escalated sharply. In June 2025, Iran’s parliament endorsed a proposal to close this key passage in response to military actions taken by the U.S. against its nuclear facilities. While this decision may not be legally binding, it certainly raises alarms across the globe about the security of oil and gas shipments from the region.


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