Oil Hope For India? Iran Says Hormuz Strait Only Closed To US, Israel, Europe

Iran's Islamic Revolutionary Guard Corps has stated that the Strait of Hormuz is closed exclusively to vessels from the United States, Israel, Europe and their Western allies. The announcement was made on Thursday through Iran's state broadcaster IRIB. It follows days of uncertainty over one of the world's busiest shipping passages, which has seen almost all commercial traffic halt since the outbreak of hostilities in the Gulf.

The Revolutionary Guards said it had already made clear, in line with international law and relevant resolutions, that the Islamic Republic of Iran reserves the right to regulate passage through the Strait of Hormuz during wartime. Any ships belonging to the United States, Israel, Europe "and their supporters" that are spotted in the waterway "will certainly be hit", the statement warned.

"We had previously said that, based on international laws and resolutions, in times of war, the Islamic Republic of Iran will have the right to control the passage through the Strait of Hormuz," said the IRGC, according to state broadcaster IRIB.

The strait has, in practice, been shut since the United States and Israel began their joint military operation against Iran on Saturday. That action has driven oil prices sharply higher and raised fears of wider disruption to the global economy.

On Tuesday, Iran indicated it would permit only Chinese-flagged vessels to use the strait. Officials described the move as a gesture of appreciation for Beijing's position towards Tehran since the Middle East conflict started. The decision carries extra weight because the Strait of Hormuz is the sole sea exit for ports in the Persian Gulf.

Iran has blocked the channel since the current round of fighting began, placing global supply chains under strain. With most ship captains unwilling to risk the crossing while fighting continues around the Gulf, international companies are now having to plan their operations without access to a route that has long been central to the movement of oil and gas.

The strait carries roughly one-fifth of all oil transported by sea worldwide, making it a cornerstone of global energy supplies. Analysts note, however, that a full blockade would not interrupt the main east-west shipping lanes between Asia and Europe. 

The Persian Gulf is effectively a dead end, bordered by the coasts of Kuwait, Iraq and Iran. The waterway remains essential, though, for trade within the region itself. It is the only route to Dubai's Jebel Ali port, the world's tenth-largest container terminal and a major hub that redistributes goods to more than a dozen countries.

The Strait of Hormuz has never before been closed to commercial shipping. Even during the Iran-Iraq war of 1980 to 1988, merchant traffic continued despite repeated attacks on oil tankers.

Live tracking on the Marine Traffic website shows large groups of vessels, mostly tankers, stationary well to the north near Kuwait and off the coast by Dubai. Iran's own merchant fleet is visible anchored off the port of Bandar Abbas on the eastern side of the strait. Further clusters of ships can be seen waiting just outside the entrance to the Hormuz channel.