The Parliament of Iran approved the proposal to close the Gulf of Hormuz on 22 June. This means that this path of supply of 20 percent oil in the world will be closed. However, this proposal will be applicable only after the approval of the Supreme National Council. Iran has taken this step in response to the US air strike. The question is that if this corridor is closed 33 km wide, what will be the effect?
Iran-Israel War is taking a fierce form
The closure of the hormuz strait means crude oil prices will start climbing. DBS has explained this in detail in its report. He has said that the way Iran and Israel’s battle is increasing, it seems that it can have serious consequences. The biggest danger is that other countries may also be involved in this fight. America has already jumped into this fight. If there is a counter -attack on the American base in the Middle East, then the situation may be out of control.
Infrastructure of oil may cause damage
Crude oil infrastructure will be the most damaged in the middle of the middle East. Middle East countries have a major stake in the total supply of crude oil in the world. The disruption of this supply means that crude prices will reach the seventh sky. Crude has already become expensive by 20 percent. Experts say it can cross $ 100 per barrel. Some experts have predicted crude to exit $ 150.
About a quarter of gas and oil supply in the world
One-third of LNG and 25 per cent of crude oil in the world are the way to the Gulf of the Hormuz. With this, it is the most important checkpoint in terms of energy supply in the world. This route supplies crude to large consumed doses of crude oils like China, India, Japan and South Korea. In such a situation, the closure of this route means that these countries will have to find other avenues for the supply of crude. This will also increase the cost of transportation of crude.
Countries like India will have a lot of impact
Aperts say that India will have the most impact on the closure of the Gulf of Hormuz. India meets its 90 crude needs from imports. A large part of it comes to India to Hormuz. Oil Minister Hardeep Singh Puri in India shared a post on social media platform on 22 June, in which he said that the government is monitoring the situation. He said that India has taken care of diversification in crude imports in the last few years.
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Diversification in import means that India does not import crude just through the Gulf of Hormuz. The second special thing he had said that oil marketing companies have enough stock for several weeks. Third, crude will continue to be supplied to India by the second way. This means that despite the closure of the Hormuz path, India will not have to face much problem. India also has the option of using its strategic oil reserve. In such a situation, people in India are not expected to have much problem.