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Last Updated:June 22, 2025, 19:55 IST
Iran's parliament approved a measure to close the Strait of Hormuz, a key global oil shipping route, following US strikes on the country's nuclear sites
Top intelligence sources said the closure of the Strait of Hormuz is likely to trigger a global recession, potentially worse than the 1973 oil crisis. (Image: NASA Earth Observatory/AFP)
Iran’s closure of the Strait of Hormuz – a key global oil shipping route – is a significant geopolitical and economic blow to the world and to itself, top intelligence sources told News18.
Iran’s parliament on Sunday approved a measure to close the Strait of Hormuz, following US strikes on the country’s nuclear sites.
According to top intelligence sources, the closure of the strait is likely to trigger a global recession, potentially worse than the 1973 oil crisis.
The sources said the strait will choke 20 to 25 per cent of the world’s oil and 30 per cent of global LNG trade. It is a crucial chokepoint for energy lifelines to Asia and Europe, they said. Oil prices are expected to soar by $200 to $300 per barrel, causing major global inflation, they added.
Logistics costs will rise as ships are forced to reroute around Africa, the sources said. Shipping delays and costs will surge by 300 to 400 per cent, significantly disrupting key shipments and energy routes that will impact India, China, Japan, South Korea, and the European Union, they added.
They further said the situation could escalate if Gulf Arab states like Saudi Arabia, the UAE, and Qatar join or support action against Iran alongside the US, as it will affect all of them. Iran-backed proxies such as the Houthis, Hezbollah, and militias are likely to escalate attacks across the region, they added.
‘IRAN’S OWN ECONOMY WILL COLLAPSE’
The sources, however, said this is a self-destructive move, as Iran exports 85 per cent of its oil through the Strait of Hormuz. Its closure would collapse Iran’s own economy, they said.
The strait has been described as the “world’s most important oil transit chokepoint" between Oman and Iran. Any closure, even partial, will reshape global trade and oil security.
This move is aimed at paralysing shipping and provoking a major power conflict. It marks the beginning of a major escalation, likely triggering a multi-theatre conflict involving the US, Gulf states, and Iran’s proxies, the sources said.
They also said the closure of the strait will block Iran’s gasoline imports, leading to domestic shortages. This is not just regional posturing, but a threat to collapse global energy markets. Iran’s regime is under enormous internal and external pressure, and this action signals desperation.
Group Editor, Investigations & Security Affairs, Network18
Group Editor, Investigations & Security Affairs, Network18
Tehran, Iran
First Published:News world 'Self-Destructive, Global Recession': How Iran's Move To Close Strait Of Hormuz Is A Big Blow | Exclusive
