Is Iran Closing the Strait of Hormuz? What It Means for Oil and Trade

Iran has taken a bold step in its escalating conflict with the West, with lawmakers voting to close the Strait of Hormuz following a series of U.S. airstrikes on Iranian nuclear and military facilities. The June 2025 strikes, which targeted key sites in Natanz, Isfahan, and Tehran, were carried out in coordination with Israeli intelligence and marked one of the most aggressive U.S. operations in the region in years. Following the attacks, Iran’s foreign minister warned that the Islamic Republic “reserves all options to defend its sovereignty.”

Find out more below.

What Is the Strait of Hormuz?

The Strait of Hormuz is a narrow waterway located between the Persian Gulf and the Gulf of Oman. It is one of the most strategically important maritime chokepoints in the world, as roughly 20% of global oil passes through it daily. The strait is bordered by Iran to the north and the United Arab Emirates and Oman to the south.

Is the Strait of Hormuz Closed?

No, the Strait of Hormuz is open—for now. On June 22, 2025, Iran’s parliament voted in favor of a measure to close the key waterway in retaliation for recent U.S. airstrikes on Iranian nuclear facilities. However, the decision is not yet binding and still requires final approval from Iran’s Supreme National Security Council or Supreme Leader Ayatollah Khamenei.

Has Iran Ever Closed the Strait of Hormuz Before?

Iran has never officially closed the Strait of Hormuz, but it has made repeated threats to do so over the years, especially during periods of heightened tension with the U.S. or its allies.

What Happens If the Strait of Hormuz Is Closed?

If the Strait of Hormuz is closed, the impact on global energy markets and shipping routes would be immediate and severe. Roughly 20% of the world’s oil supply—including exports from Saudi Arabia, Iraq, the UAE, and Kuwait—passes through the narrow waterway daily. A closure would disrupt this flow, likely sending oil prices soaring and triggering fuel shortages or cost spikes in countries heavily reliant on Gulf exports.

“I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil,” U.S. Secretary of State Marco Rubio said on Fox News’ Sunday Morning Futures with Maria Bartiromo, emphasizing the international stakes involved.

Rubio also warned that closing the strait would be “economic suicide” for Iran, noting that the Islamic Republic relies on the strait to export its own oil. Iran, the third-largest oil producer in OPEC, pumps around 3.3 million barrels per day and exports at least 1.6 million bpd—nearly 80% of which goes to China, according to the U.S. Energy Information Administration (EIA).

Vice President J.D. Vance echoed that warning in an interview with NBC’s Meet the Press, saying, “Their entire economy runs through the Strait of Hormuz. If they want to destroy their own economy and cause disruptions in the world, I think that would be their decision.”