The Iranian Parliament has passed a bill regarding the potential closure of the Strait of Hormuz – a strategic waterway through which approximately 20% of the world’s oil is transported. This move is seen as a response to recent U.S. airstrikes on Iranian nuclear facilities. The final decision on blocking the strait must be approved by the country’s highest security body.
This is reported by Business • Media
Impact on Oil Prices and Energy Markets
The Strait of Hormuz plays a crucial role in global energy logistics, connecting oil-exporting countries – Saudi Arabia, the UAE, Qatar, Kuwait, Iraq, and Iran – with global consumers. Due to the threat of the strait being blocked, the market reacted immediately: the price of August futures for Brent crude rose to $78, while WTI reached $75 per barrel.
Analysts at Goldman Sachs predict that if the Strait of Hormuz is actually blocked, the price of Brent crude could temporarily rise to $110 per barrel. However, by the fourth quarter of 2025, the average price is expected to settle at $95 per barrel. In the European gas market, the price for TTF could reach €74 per MWh ($900 per 1,000 cubic meters).
Potential Impact on the Global Economy
“When there is uncertainty, what happens? Investors do not invest, consumers do not consume. And this restrains growth prospects,” Georgieva said.