Could Iran's threat to close Strait of Hormuz escalate conflict with Israel?
The armed confrontations between the two nations have already driven up global oil prices by over 7%, putting Bangladesh's fuel imports at risk
As tensions continue to escalate between Iran and Israel, a senior Iranian lawmaker has warned that Tehran may consider closing the Strait of Hormuz - a strategic waterway vital to global oil trade - Iranian state media IRINN reported.
The potential closure would risk triggering a global energy crisis and significantly widening the scope of the ongoing conflict.
According to Al Jazeera, the strait is the sole maritime gateway into the Persian Gulf, flanked by Iran to the north and Oman and the United Arab Emirates to the south. It connects the Gulf to the Gulf of Oman and the Arabian Sea in the Indian Ocean.
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The US Energy Information Administration estimates that nearly 20% of the world's oil consumption passes through the strait, which it describes as the "world's most important oil transit chokepoint".
Although it spans 33km at its narrowest point, actual shipping lanes are considerably narrower, leaving vessels exposed to blockades or attacks.
The strait has witnessed numerous flashpoints in the past. During the Iran-Iraq War (1980–1988), both nations targeted commercial ships in what became known as the "Tanker War", but neither side ever fully closed the strait.
More recently, in 2019, four commercial vessels were attacked near the waterway, just off the coast of Fujairah in the UAE, during a period of high US-Iran tensions under then-US President Donald Trump. Washington blamed Tehran, though Iran denied any involvement.
"Attacking shipping lanes has long been used to apply pressure amid conflict," Al Jazeera reports.
Since the start of the Gaza war, Yemen's Houthi rebels - allies of Iran - have repeatedly targeted commercial vessels near the Bab al-Mandeb Strait, disrupting trade through the Red Sea.
Unlike Bab al-Mandeb, which ships can avoid by rerouting around Africa, there is no alternative to bypass the Strait of Hormuz for maritime trade out of the Gulf. Any closure would not only disrupt oil shipments from Gulf nations but also cause a spike in global oil prices, even for countries that do not directly import oil from the region.
Despite the threat from Iranian MP Esmail Kosari, it remains uncertain whether Tehran has the operational capacity or political willingness to block the strait entirely. Such a move would likely provoke a strong response from the United States, which maintains significant naval forces in the region.
Following Israeli strikes across Iran early Friday - targeting military commanders, nuclear facilities, and residential areas - Iran launched hundreds of ballistic missiles in retaliation.
Iranian Foreign Minister Abbas Araghchi stated, "The Zionist regime crossed a new red line in international law, and it was attacking nuclear facilities," during a briefing with diplomats broadcast on state TV.
Araghchi added that Iran is acting in "self-defence" and would de-escalate "as soon as Israel stops its strikes."
Although the US assisted in intercepting Iranian missiles, it has not taken direct military action against Tehran and has reiterated its non-involvement in the Israeli attacks. Tehran has also refrained from targeting American forces or interests.
However, if Iran were to close Hormuz, it would directly impact the US economy and could provoke a military reaction - particularly if former President Trump were to return to office.
Tehran has previously demonstrated its willingness to exert pressure in the strait. In April 2024, Iranian forces seized a container vessel near the Strait of Hormuz following an Israeli strike on Iran's consulate in Damascus. The retaliation that followed saw one of the most intense direct exchanges between Iran and Israel to date.
Bangladesh's fuel imports at risk
Amid escalating tensions in the Middle East following attacks between Iran and Israel, Bangladeshi shipping companies fear major disruptions in fuel imports if vessel movement through the strategic Strait of Hormuz is closed.
The armed confrontations between the two nations have already driven up global oil prices by over 7%. Shipping companies warn that if infrastructure or commercial shipping in the strait is targeted, the impact will ultimately be felt in the pockets of ordinary consumers.
They explained that in addition to a potential fuel oil crisis, disruptions in the supply of raw materials for coal power plants and liquefied natural gas (LNG) could also impact the domestic market. Load shedding may hamper industrial production, while operating costs for fuel oil-dependent businesses are expected to rise.
At the same time, transportation costs and overall inflation are likely to increase – burdens that will ultimately fall on the shoulders of ordinary people.
"If the Strait of Hormuz is closed, ships will be forced to take alternative, longer routes, which will naturally increase transportation costs," Azam J Chowdhury, chairman of the Bangladesh Ocean Going Ship Owners' Association, told TBS.
"Countries like Bangladesh, which are heavily dependent on oil imports, will be among the hardest hit," he added.
The Strait of Hormuz is a critical global shipping corridor, through which roughly one-fifth of the world's oil supply flows.
