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News India Live, Digital Desk: Closing the Strait of Hormuz, which is the lifeline of oil exports from Gulf countries, is Iran’s biggest retaliatory step so far. This decision has been taken after the US-Israeli strikes on February 28, in which Iran’s Supreme Leader Ayatollah Ali Khamenei was reportedly killed.
1. Why is the closure of ‘Hormuz’ a threat to the whole world?
The Strait of Hormuz is the world’s busiest and strategic oil route:
20% oil supply: The world’s total crude oil consumption is approximately one-fifth (20%) It passes through this 33 km wide route.
Major Exporters: Saudi Arabia, Iraq, United Arab Emirates (UAE), Kuwait and Qatar send most of their oil and gas to the world through this route.
No option: Countries like Kuwait and Qatar have no other maritime option other than this route for oil export.
2. How will India’s problems increase? (Impact on India)
India meets almost its needs 85-90% crude oil Imports, a large part of which comes via:
Inflation explosion: crude oil prices $100 to $150 per barrel Can go beyond. This will lead to a huge rise in the prices of petrol and diesel in India.
LPG and LNG crisis: India imports 60% of its natural gas (LNG) through this route. The supply of LPG and CNG may be affected.
Current Account Deficit (CAD): Due to oil becoming expensive, India’s foreign exchange reserves will decrease rapidly, due to which the rupee may weaken further.
3. Iran’s deadly warning: “Ships will blaze”
Iranian General Ibrahim Jabbari has given a direct message through state media:
“The Strait of Hormuz is closed. If anyone dares to cross, the Revolutionary Guards and our navy will set those ships on fire.”
4. What is India’s ‘backup plan’?
The Government of India is closely monitoring the situation and considering alternative arrangements:
Import from Russia: India can increase the amount of oil coming from Russia, which comes through another sea route instead of this route.
Strategic Oil Reserves (SPR): India can use its underground oil reserves (which are enough for about 9-10 days).
Pipeline Route: Saudi Arabia and UAE have some pipelines that bypass Hormuz and go to the Red Sea, India can try to take supplies from there.
