843 $150 Oil Trap: Iran's Strait of Hormuz Shutdown Could Starve 35 Countries

23 Feb 2026The Strait of Hormuz, a crucial waterway for global energy trade, faces potential closure due to escalating tensions between Iran and the United States. This could disrupt the flow of 20 million barrels of oil daily, impacting 35 countries, particularly Japan, South Korea, India, and China, which heavily rely on this route for their energy needs. The situation highlights the vulnerability of the global economy to disruptions in this narrow passage.A sustained closure of the Strait of Hormuz, a crucial passage for global oil and LNG trade, would have far-reaching consequences. It would disrupt the supply chains of major economies, leading to factory shutdowns and potential shortages of goods. The resulting economic impact would be exacerbated by rising shipping insurance costs and the potential for food security crises in countries heavily reliant on imports.The Strait of Hormuz, a crucial 33km-wide waterway, faced a potential closure due to escalating tensions between Iran and the United States. Iran’s strategic mine-laying capability in the strait posed a significant threat, potentially disrupting the global oil supply and causing economic chaos for 35 countries reliant on its uninterrupted flow. The potential closure, driven by Iran’s response to American military actions, highlighted the vulnerability of the global energy system and the potential for severe consequences.