PESHAWAR– Global oil markets showed immediate volatility Monday after reports emerged that Iran’s parliament has approved a proposal to close the strategically vital Strait of Hormuz, triggering fresh concerns about the impact on global supply and prices.
As trading began in international markets early Monday morning, the price of Brent crude oil suddenly surged by 5.7 percent, reaching 81.40 US dollars per barrel—its highest point in five months. However, within a few hours, prices dropped again, settling at 77.20 US dollars per barrel.
Iran’s state television reported that the country’s parliament has granted initial approval to shut down the Strait of Hormuz, although the final decision lies with the Supreme National Security Council. The narrow waterway—just 33 kilometers wide at its narrowest point—sits between Iran and Oman, connecting the Gulf of Oman and the Persian Gulf. It is one of the most critical chokepoints for global oil transport.
Countries like Saudi Arabia, the United Arab Emirates, Kuwait, and Iran depend heavily on the Strait of Hormuz to export their oil to the rest of the world. Any disruption in this corridor could significantly impact global energy supplies.
Ole Hansen, an analyst with Denmark’s Saxo Bank, stated that oil traders are closely watching Iran’s next move in response to recent Israeli and American military actions. The uncertainty surrounding Tehran’s retaliation has kept markets on edge.
According to Reuters, analysts at Goldman Sachs have warned that oil prices if Iran closes Strait of Hormuz could surge dramatically. In a worst-case scenario, Brent crude could exceed 110 US dollars per barrel, setting off a new wave of economic pressure worldwide.
The unfolding developments have put global energy markets in a precarious position. While the Strait remains open for now, the potential closure continues to dominate trader sentiment. Experts say that oil prices if Iran closes Strait of Hormuz will likely remain a key concern for investors, energy-dependent economies, and geopolitical analysts in the days ahead.
