Impact of Closing the Strait of Hormuz

We all get how war between nations can wreak havoc on the economy, and now we need to check out what happens if Iran blocks the Strait of Hormuz. According to a report, Iran's ready to attack any ship trying to get through the strait. If this stalemate carries on, the ripple effects could really mess with the global economy, likely leading to even more inflation on top of current issues, and it could spark conflicts as other countries rely on this route for oil. Oil's super crucial for every country, right? The Strait of Hormuz is this tight passage that connects Iran with many other countries that send their ships through to get oil. Just look at how oil prices shot up early Monday due to all this tension it’s a clear sign that delays could be looming at the Strait of Hormuz. Let’s think about what could happen if this continues and oil tankers can’t get through this vital route. Key Oil Exporting Nations That'd be Affected: Iraq UAE Saudi Arabia Kuwait Qatar Iran What Could Happen Economically if the Strait of Hormuz is Blocked: 1. Inflation for sure, which will be driven by rising oil prices as major suppliers face restricted access.

The price of crude oil is already increasing. Since 3 days ago when the market opened, the price has been increasing. Iran is not yet backing down at all, they are striking US bases and now places like airports in the United States ally countries that are producing oil and Saudi Arabian is among the countries. If oil price continues to increase, this will definitely cause inflation in many countries. For others that you mentioned, I still see it just as speculations the Strait of Hormuz is blocked already and over 250 ships are stuck there. But 80% of Iran exports pass through the Strait. Which means the blockage will also affect Iran.

Now it is clear why control over Venezuelan oil was first established. Now, countries that need oil will be able to buy oil from Venezuela from Trump. Although, of course, the price will be high. What is more interesting is who some countries will now buy liquefied natural gas from. It seems that you can only buy it from the United States. And of course, it's not cheap either.

Around 15 million barrels of crude oil and gas per day must pass through the Strait of Hormuz, meaning that if the Strait of Hormuz is closed by Iran, the US and Israel must be responsible for attacks on Iran. It could be said that 15 percent of the world's oil and gas needs will be stopped, meaning that as a consequence the global economy will have a negative impact, the Hormuz route is one of the most strategic routes for world oil supplies. If up to 20% of oil and gas supplies are stopped, it is clear that the world will automatically be disrupted, the economy and inflation will occur throughout the world, this is a disaster for society globally. There is no bargaining anymore if the closure of the Strait of Hormuz will automatically hamper the flow of trade in imported and exported goods and automatically have a direct impact on the world economy, this will be economic destruction in the near future as the global trade route dies.

For oil, I agree with you that the Venezuela is a good target to get that but that is not the only destination, Russia, part of Europe like Norway that are still there as well as Africa. I understand it only increases the cost of logistics which will also lead to increase in price but there is definitely alternatives to the oil from Middle East. For LNG, I disagree with you because the US does not have the supply to meet global demand. There is Australia and Nigeria for that plus Russia too. The major consequence of that blockage is high prices of energy with associated inflation not the availability of alternative.

Whenever I look at this, it's always funny to me how the game is rigged against Iran. They simply cannot win this. Whatever they do now is retaliation. They were attacked first, but their retaliation isn't on the people who directly attack them alone; it's on several others, so this will make them the bad guys in the story. They cannot attack the US, so they go after US allies and US military bases, which makes them an enemy to many other countries. So, the talking point would always be Iran's retaliation because the act that made them retaliate would be ignored by most people. The same thing will happen if this continues and oil prices go up. So many countries would be affected, and the narrative would be "Iran is responsible for this", but the act that led them to take such actions would be ignored. However this plays out, it was already rigged agaisnt them.

Iran is already affected, their local currency even collapsed. Now, they are in war again with a powerful country, so I don't think they care about the Hormuz anymore. They just want the US and Israel to suffer, and anyone helping them. The US was very smart to take the Venezuelan oil first before striking here, because they knew the last time when King Faisal blocked the Strait of Hormuz, the USA had to make a deal with them, because they were suffering more. But only this time, they were smart but I don't know how much they are getting from Venezuela now, because it is also the biggest source of oil. Maybe this time US won't have to make a deal, and they have also left some of their bases from other arab countries, as Saudi representatives said, they are leaving us alone while they promised to defend us in exchange for some deals they did before. Anyway they US representatives even said Israel is more important and even if these arab countries won't understand their mistake now, then I think they deserve it. Anyway, the rates of gas are already 50% higher, the petroleum prices are increasing too but not only Iran, or the US is going to sufferm but countries like Qatar, Kuwait, Bahrain, and the UAE are also going to suffer because they import food and many other things from other countries.

The economic effects can be a broader one and can have secondary effects on industries and food prices since agricultural and industrial products depends on energy to prevail. High energy cost can raise the cost of food production and transportation as well as affect the cost of running high energy-consuming industries. This can prompt a global recession risk if prolonged, since there would be increased energy prices, weaker supply chains and heavily disrupted trade.

If the Strait of Hormuz were to be closed, it could be an energy apocalypse, as 20-30% of the world's oil supply would be cut off. Prices would certainly skyrocket, and many countries would face spiraling inflation and fuel subsidies would be cut. And now that the Iranian parliament has approved the closure of the Strait of Hormuz, it could be said that a chain of economic impacts would occur, such as disruptions to global oil and gas export routes, including supplies from Saudi Arabia, Iran, Iraq and Qatar. Consequently, global oil prices would soar because global oil availability would plummet while demand remained high. In short when the Strait of Hormuz closes, global oil prices rise, fuel prices rise and logistics costs rise, leading to higher prices for goods, which would reduce people's purchasing power, leading to higher inflation and slowing economic growth. Yes, the US has secured Venezuela. The US is smart because it has secured its oil reserves. Perhaps this is also why the US dared to attack Iran.

Your are right the upcoming market details and due to Iran and American issues the prices of crude also increase in market and further situations seems to be unfavorable. Because Irans shows courage to America and target its bases in middle east like in gulf countries and these countries are the largest producers of oil in the world and if this conflict will continue then oil prices will also contiuesly increased and this many increases inflation all over the world. And according to international reports many ships are stuck in ocean due to war so supply chain also affected and the main point is that in strait of Hurmuz every thing is blocked and its the important site for global trade so this blockage not only affects Iran's but also many countries can faces trouble so situation shows that this inflict can affects global economy as well.

A whole nation should not be judged by one person. applies for Islam or Jew 3rd Newton Law its apply in Military actions You will hear of wars and news of wars. Be careful, but do not be alarmed, for these things must happen, but the end is not yet

The end result of all these may be terrible beyond what we might think, because we only know about how it all started, but where it is going still remain unclear to us all, war could extend to any length and gravity, the consequence could be more unbearable because at the end, everyone seem to be affected directly or indirectly, while am going to wish well for Iran and expect that they find peace amidst this turbulence they are facing, because its impact is not felt within their country alone, but on global economy.

In some countries especially oil producing countries where the America/Israel and Iran war doesn't concern the oil marketers there (taking advantage of the situation) have already inflated the pump price of oil. Take Nigeria for example, 3 days ago I bought fuel at #855 per litre and today am buying it for #955, that's a #100 difference. For an oil producing country it becomes worrisome for those countries that ain't oil producing. If the Iran blocking of strait of hormuz last for more days then things are really going to be worse economically across many countries with oil being an essential commodity

The main reason why blockage is a difficult issue is the fact that oil demand in not flexible. Unlike other goods, the universe can never stop using oil all of a sudden. This is because the straight handles almost 25% of the world’s total oil consumption so a sudden shutdown will definitely result in a gap in supply demand that other exporters like Norway or even US cannot fill, which can definitely result in an aggressive spikes in prices. Manufacturing, in this century is dependent on urgent delivery. It’s not all about the gasoline we use in cars but the petrochemical raw materials used to produce medicines, fertilizers and even plastics, this means that the blockage will stimulate a massive supply chain volatility across manufacturing sectors. The East Asian factories will suffer sudden energy rationing, resulting in shortages globally in finished goods. You mentioned China, Japan and India which are even more fragile than the West. This is because while US becomes a net oil exporter, the Asian’s are 80% dependent entirely on Persian Gulf crude. A longer blockage will pressure these nations to choose between military intervention or economic collapse which will draw world powers potentially into a regional dispute to ascertain survival. Somehow there is a misconception that pipelines can remedy this. Though UAE and Saudi Arabia do have pipelines which bypasses the straits but then, their total supply is below the average of what flows through the water currently. And also these pipelines are high targets during intense conflict, which makes this bypass a vulnerable insurance policy. If the prices of oil doubled or even tripled in just a week, then the result of the inflation will not just be that the price is increasing due to production cost, but will result in confidence crises in many currencies. The banks due to the pressure may increase interest rates to combat inflation, at the course of energy shortage which may result in depression . This may create a gap that could probably take a decade to be filled.

That’s the negative side of war, those throwing it are not going to be thinking straight all they want is will power. I think Iran knows that they are not going to win this war but they seriously want to make a statement and that’s why they are sporadically attacking everyone associated to the war (US allies). Even the the closure of the Strait will affect them but it will definitely punish other countries too and that’s what they are after at the moment. Many will argue about USA not being affected but it’s a propaganda they are definitely affected as they are also losing soldiers. Hopefully we get to see an end before it escalates into allies joining into the war

You can roll the clock back just a year or so, when the area was also avoided due to the previous attack on Iran - it will cause a short term spike but this time we really don't know what the future will hold because now their leader is dead there is a vacuum. The next one might turn out to be much worse but they will likely stay hidden. This conflict could simmer for much longer and unless there are "boots on the ground" then it will not be possible to hurt Iran enough to make them capitulate. Currently we face are looking at quite a long situation but Iran will have some ability to ramp up their attacks, which might not all stay isolated to the Middle East however much Trump/Israel wishes that to be the case.

no one likes what’s happening right now most especially countries dependent on oil from middle east. if the attacks continues, it won’t be surprising if some countries help “end” this war already. the entire economic system will be affected if oil is not supplied as they were.

Maybe we have to also take a look at this from this perspective, that what does Iran have to benefit from blocking this route, when they know that most of the affected countries will be the GOLF and they are not in war with any of them, i still don't see a reason why they should be able not to understand why other countries maintain allies with the US exempting them, if Iran do not see a back up from another country, they may end up in a more miserable condition than Gaza.

These country don’t care, they don’t care all dying than allowing themselves to be looked down on by the US government. This was have just started between these two countries but it’s already affecting all the countries that have allies with the US and have their bases situated in that country. For them to fire retaliatory strikes into those countries means something, it’ll directly or indirectly affect US economy and that’s where the major concern of them will be, to disrupt everything in the US economy. I am hearing rumor of US calling for negotiations to end the war, but Iran are not looking to back down now since US fired the first shot at them. It is now looking like this ally countries are now pressuring Trump to hold back this war as it is affecting them more than it’s even affecting the US that initiated the war with them. The beginning of every war is known, but how far the impact of that war can be felt is unknown, so peace should always not be a choice to choose from. Peace should not be an option but mandatory for all.

In war, expect the worst reaction from any country, don't think because they will stand to gain nothing or neighboring countries will suffer can stop them from any harsh decisions. During war, even allies can turn enemies, some of this country doesn't even like the current regime of Iran, this is what both parties know but since they are not with war with each other, there don't send missile to each other but it doesn't stop them from harsh decisions so everyone can feel the consequences of United state actions. I didn't listen to Donald Trump manifesto but I heard loud and clear that he was going to end war but they started this particular one. I don't want to know who is wrong here but the guy that send missile in the air to bump another country leadership. Everything he promised has collapse, Bitcoin we didn't see. He said we are going to win in the market to the point we are going to get tired but all are loses, just open mouth and be disturbing everyone.