Iran threatened to shut down the Strait of Hormuz, a crucial oil chokepoint, after the U.S. attack on its nuclear facilities on June 20, 2025. The Economic Times reported that the threat came after the Pentagon announced that the strike pushed back Iran’s nuclear program by months but not with core damage.
Iran’s Foreign Minister Abbas Araghchi hinted at this revenge, with parliament’s previous sanction providing gravity. The action, during a shaky Israel-Iran truce, increases tensions, threatening 20% of the world’s oil trade and spiking economic interests.
Threat Interrupts Energy Flows
The strait, linking the Persian Gulf with the Arabian Sea, transports 20 million barrels of oil a day. Iran’s hypothetical closure—through mines or sea blockades—may shoot up oil prices, Brent crude already standing at $80.28 per barrel, according to Reuters.
The Economic Times reports U.S. Secretary of State Marco Rubio’s call to China, Iran’s largest oil purchaser, to intervene, emphasizing the threat’s international scope. Although Iran has not yet acted, its military preparedness, such as Shahed drones, indicates capability, making this a legitimate economic tool against Western pressure.
Threat Complicates Diplomacy
The warning tensions in U.S.-Iran relations, with China’s appeal to de-escalation in conflict with Tehran’s insubordination. The UN pleads for restraint, but Iran’s Supreme National Security Council makes the final decision, according to The Guardian.
Rubio’s appeal to Beijing points to China’s clout, but its balancing act—condemning the strike and not confronting—shortens the leash. The NATO summit’s defense spending increase on June 25 turns up the heat, as Iran’s threat would lead to Western reaction and risk expanding into full-blown conflict and diplomatic deadlock.
Threat Fuels Public Anxiety
Posts on X demonstrate increasing alarm, with #StraitOfHormuz trending as traders and citizens worry about oil price hikes. Iranian hardline advocates hail the threat as defiance, but Gulf nations such as Saudi Arabia urge calm.
The Economic Times references supertanker U-turns after the strike, implying market anxiety. The public mood exacerbates the psychological effect of the threat, pushing governments to respond while highlighting Iran’s bet—economic suicide if played out, according to Rubio, but an effective lever if contained.
Threat Shapes Economic Future
As Iran’s threat hangs over June 26, 2025, its effect could redefine world trade. A shutdown would cause a $5-per-gallon increase in gas prices, according to Newsweek, and severely impact economies.
The U.S. and allies harden defenses, but Iran’s surrogates may expand the crisis. Whether this threat is diffused through diplomacy or expands to action hinges on Tehran’s next step and China’s reaction, representing a turning point for energy security and global relations.
Read more: Shanghai Collaboration Organization Defense Ministers Meet in Qingdao—Unity or Global Chaos?
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