Iran’s parliament backs blocking Strait of Hormuz. Its closure would alienate Tehran further

CNBC ^ | June 23, 2025 | Lim Hui Jie

[Red Badger]

Key Points

Should Iran follow through on its threat to close the Strait of Hormuz, it could alienate its neighbors and trade partners.

But the possibility of a closure of the strait is low, experts said, despite Tehran’s rhetoric around closing the strait.

A closure would provoke Iran’s markets in Asia, particularly China, which accounts for a majority of Iranian oil exports.

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Iran may be threatening to close the Strait of Hormuz but experts told CNBC that it’s also the one with the most to lose.

In major move after U.S. struck Iranian nuclear sites, the country’s parliament on Sunday approved the closure of the Strait of Hormuz, according to a report from Iran’s state-owned Press TV that CNBC could not independently verify.

The step would risk alienating Tehran’s neighbors and trade partners.

The decision to close the waterway now rests with the country’s national security council, and its possibility has raised the specter of higher energy prices and aggravated geopolitical tensions, with Washington calling upon Beijing to prevent the strait’s closure.

Vandana Hari, founder of energy intelligence firm Vanda Insights, told CNBC’s “Squawk Box Asia” that the possibility of closure remains “absolutely minimalistic.”

If Iran blocks the strait, the country risks turning its neighboring oil producing countries into enemies and risks hostilities with them, she said.

[fidelis]

Excellent. That’s a keeper.

[Tom Tetroxide]

It’s a dirty job, but somebody has to do it especially in these wild and crazy times we live in.