Israel Iran War News, Strait of Hormuz Importance: The United States and Israel carried out a joint military strike on Iran on Saturday, marking the second time this year that the U.S. has attacked a major oil-producing nation. This time, the impact on global markets could be even more severe.
Iran, a member of Organization of the Petroleum Exporting Countries (OPEC), is strategically located along the Strait of Hormuz – a crucial route for global energy trade through which nearly 20% of the world’s total oil and gas supply passes. An official from the European Union’s naval mission European Union Naval Force Operation Aspides told Reuters that VHF transmissions have been received from Iran’s Revolutionary Guards stating that no ships are permitted to pass through the Strait of Hormuz. However, Iran has not officially confirmed this.
Closing the Strait of Hormuz – which is just 21 miles wide at its narrowest point – would be an unprecedented step. In the 1980s, former Iraqi President Saddam Hussein attempted to provoke Iran into shutting down the route, but Iran still allowed ships to pass at that time.
Meanwhile, Yemen’s Houthi groups have also threatened fresh attacks on shipping in the Red Sea and the Gulf of Aden region, where they carried out attacks in 2023.
Brent Crude Could Reach $80
Experts say that previous U.S. military actions – including a strike on Venezuela in January and last year’s bombing of Iran – had limited market impact. However, a larger conflict in the Middle East could disrupt supplies from Saudi Arabia and other countries. The U.S. has already indicated that the conflict in Iran may be prolonged.
Although U.S. oil markets were closed on Saturday, oil prices rose to $67 per barrel on Friday amid fears of a potential strike – nearly $5 higher than last month.
Investment bank Barclays has stated that escalating U.S.-Iran tensions could push Brent Crude prices up to $80 per barrel. China could be the most affected, as it imports nearly 90% of Iran’s 1.5 million barrels per day of oil exports.
Analysts note that Iran’s oil production is significantly larger than Venezuela’s, meaning the potential impact on global supply could be more severe.
Impact on India
According to data, around 50% of India’s total crude oil imports during January–February passed through the Strait of Hormuz, up from about 40% in November-December 2025.
Experts believe that if disruptions occur in the Strait of Hormuz, India may attempt to source oil via alternative routes such as Saudi Arabia’s East-West pipeline (to the Red Sea) and the UAE’s Abu Dhabi crude oil pipeline (to Fujairah). However, these pipelines have limited capacity and would not be able to fully compensate for a major disruption in the Strait of Hormuz.
