Iran has just placed its hand on the pulse of global energy — by shutting down the Strait of Hormuz.
This isn’t just any shipping lane — it’s the most critical artery through which a quarter of the world’s oil supply flows. At just 33 kilometers wide, the Strait of Hormuz may seem narrow, but it holds immense global importance. And now, with its closure, the entire world is on edge.
But while Europe and the US scramble for solutions, India sits prepared — quietly, but confidently.
BREAKING: Iranian parliament has just voted to close the Strait of Hormuz.
— Brian Krassenstein (@krassenstein) June 22, 2025
– 20% of global oil passes through the Strait
HERE’s what to expect if successful:
– Oil Prices could spike by 30–50%+ almost immediately
– Global Inflation likely Rises
– U.S. Gas Prices likely… pic.twitter.com/WC4dmeagRE
What’s the Big Deal About the Strait of Hormuz?
The Strait of Hormuz is the lifeline for global oil shipments, especially from the Middle East. If this route is blocked, there are no real alternatives that can handle the volume and speed of oil transportation it supports.
This isn’t just a traffic jam; it’s a potential global economic disaster.
Now, Iran is escalating things further by taking control of another chokepoint — the Bab al-Mandeb Strait, a route crucial for oil exports from Africa. Iran-backed Houthi rebels have seized control here, tightening the noose on global energy supply lines.
This dual control could send oil prices soaring, triggering inflation across the globe.
Why Europe Will Struggle
Unlike the US, which has its own oil reserves, Europe is heavily dependent on external oil — especially from the Gulf region. Iran’s bold moves leave Europe exposed and scrambling.
To put it in Bollywood terms, Gabbar Singh’s dialogue suits Europe well right now:
“Tera kya hoga Kalia?”
Translation: “What will become of you, Kalia?” — a reference to Europe’s vulnerable state in this oil drama.
Will This Trigger a Global Economic Disaster?
If this crisis deepens, we could be looking at a deadly trio: inflation, recession, and global instability. Economies already struggling — like Pakistan, Sri Lanka, and several African nations — could suffer unbearable shocks.
Some call it economic warfare. Others call it blackmail. Whatever the term, the outcome could be disastrous — unless you’re India.
How India Saw It Coming — And Prepared Smartly
While other countries debated, India acted. Anticipating global instability, the Indian government silently crafted a robust oil strategy.
- India is now importing over 2.2 million barrels of crude oil daily — the highest in two years.
- Much of this oil is coming from Russia and the US — at discounted rates.
- India refused to bow to Western pressure to stop buying oil from Russia during the Ukraine war — a bold move that’s now paying off.
- The country has diversified its energy sources with suppliers from over 40 countries, reducing dependency on any one nation.
As a result, India’s oil prices remain under control while the world fears the next fuel shock.
Strategic Foresight: The Modi Government’s Silent Strength
Where previous governments might have delayed or wavered, the current administration planned in advance. India’s forward-looking oil policy has ensured energy security — not just for today but for future uncertainties.
Had similar long-term planning existed during earlier administrations, we might not have seen oil prices double every decade.
Today, India isn’t just safe — it’s showing the world how to handle crises with foresight and firmness.
5 FAQs About the Strait of Hormuz Crisis
Q1. Why did Iran close the Strait of Hormuz?
Iran has taken this step as a pressure tactic amidst growing tensions in the Middle East and its conflicts with Western powers. It’s a strategic move to assert control over global oil flows.
Q2. How will this affect global oil prices?
Prices are expected to spike significantly due to supply disruptions. This could lead to inflation, higher transportation costs, and potential recession.
Q3. Why is Europe more vulnerable than the US?
Unlike the US, Europe lacks substantial oil reserves and is highly dependent on Gulf oil. Disruptions directly impact European energy supply and prices.
Q4. How has India remained unaffected?
India has diversified its oil imports, secured deals with Russia and the US, and built up reserves in advance — shielding itself from short-term shocks.
Q5. What’s the global risk if this crisis continues?
If tensions escalate further, the world may face a full-blown energy crisis, triggering economic instability across continents — especially in oil-dependent developing nations.