The Strait of Hormuz is a critical waterway for global oil trade. It is a narrow passage between Iran and Oman. Around 20% of the world's crude oil flows through this strait daily. This makes it a vital route for many countries, including China. China relies heavily on this strait for its oil imports. Iran, which sits at the top of the strait, has threatened to close it. This move could have serious consequences for the global economy.

The U. S. has urged China to intervene. The U. S. Secretary of State has called on China to persuade Iran not to close the strait. This is because China is Iran's biggest oil customer. The two countries have friendly relations. Iran's foreign minister has warned that Iran will defend its sovereignty. This comes after the U. S. bombed three of Iran's nuclear sites. Iran's parliament has backed the idea of closing the strait. However, the final decision rests with Iran's national security council.

Closing the strait could lead to a significant increase in oil prices. Experts predict that prices could surge above $100 per barrel if the strait remains closed for an extended period. This would be a major blow to the global economy. The U. S. views such a move as a declaration of war. It would be a risky move for Iran as well. Iran is a major oil producer and exporter. Most of its oil exports pass through the strait. Closing it would cut off a key revenue stream.

The U. S. has options to respond if Iran tries to close the strait. The U. S. Fifth Fleet is stationed in Bahrain. Its mission is to protect maritime trade in the Persian Gulf. Many believe the U. S. Navy could quickly resolve any attempt by Iran to block the strait. However, some analysts warn that the disruption could last longer than expected. They suggest that shipping through Hormuz could be interrupted for weeks or even months. This would have a significant impact on the global oil market.

The situation is complex and involves multiple players. China's role is crucial due to its dependence on Iranian oil. The U. S. is watching closely and has made its stance clear. Iran, meanwhile, is asserting its sovereignty. The outcome of this standoff could have far-reaching effects on the global economy.

IRAN AND STRAIT OF HORMUZ

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