The Islamic Revolutionary Guard Corps of Iran announced on February 28 that it would be closing the Strait of Hormuz in response to attacks from the US and Israel. This waterway is crucial, as it facilitates about 20% of the oil transported by sea and approximately 30% of Europe’s aviation fuel supplies, along with 20% of the liquefied natural gas (LNG) exports. The implications of such a closure could have severe repercussions on global energy markets, particularly for nations reliant on oil supplies from the Persian Gulf.

US Treasury Secretary Scott Bessent stated that the US has granted a 30-day permission for Indian refineries to purchase Russian oil amidst heightened tensions in the region. Iran has yet to close the Strait of Hormuz to Chinese vessels, but approximately 45% of oil transported by sea to China passes through this vital passageway. Should Iran proceed with its announcement, it could lead to significant disruptions in energy supplies for both Asia and Europe, prompting international concern.

Under normal circumstances, more than 20 million barrels of fuel flow through the Strait each day, according to analytics firm Vortexa. The coastal countries of OPEC, which include Saudi Arabia, Iran, the UAE, Kuwait, and Iraq, primarily export their oil via these waters, with most of it destined for Asian markets. Qatar's role as a major gas supplier adds another layer of complexity to the situation, especially given its geographical proximity and energy dealings with both Iran and other regional powers.