Iran Threatens Strait of Hormuz Closure, Global Oil Prices Surge

Following U.S. airstrikes on Iran's nuclear facilities, Iran's parliament approved a measure to close the Strait of Hormuz, a critical chokepoint through which about 20% of the world’s oil supply passes daily, mainly destined for East Asia. This move has caused oil prices to spike, with Brent Crude briefly rising 5% and nearing $80 per barrel, amid fears that prolonged disruption could push prices above $100 if Iran follows through. The U.S. has urged China to discourage Iran from closing the strait, as such an act could be seen as an act of war, potentially triggering a wider conflict. Asian economies, including Taiwan and India, face rising fuel costs and potential supply disruptions, with Taiwan's Minister of Economic Affairs noting that even though less than 20% of its oil passes through Hormuz, any closure would increase delivery times and domestic fuel prices. The geopolitical tensions have also impacted global stock markets and prompted governments to prepare contingency plans and monitor the situation closely. Discussions among international actors, including EU foreign ministers and Iran's talks with Russia, underscore the escalating crisis's global significance.