Iran is considering closing the Strait of Hormuz in response to Israeli military strikes, according to a senior Iranian lawmaker quoted in a report by Alkhaleej Today.
Esmaeil Kowsari, a member of the Iranian parliament, told the state-run Press TV on 14 June that Tehran was weighing the option of blocking the critical waterway, one of the world’s most important petroleum oil transit routes.
The potential closure of the Strait of Hormuz would represent a major escalation in the already volatile conflict between Iran and Israel, the 14 June report said.
“Iran is considering blocking the Hormuz Strait in the Persian Gulf, which sees more than 17M barrels of oil pass through it every day,” Kowsari was quoted as saying.
His remarks came a day after Israel launched a wave of airstrikes across Iranian territory, targeting nuclear and missile infrastructure, in which several senior military officials and scientists were reportedly killed, the report said.
According to Iran’s envoy to the United Nations, at least 78 people were killed and 320 others injured in the Israeli strikes.
In retaliation, Iran launched ballistic missiles at targets in Israel, with media reports stating that at least three people were killed and over 170 injured.
The Strait of Hormuz provides the only sea passage from the Persian Gulf to the open ocean and is one of the world’s most strategically important choke points.
In 2023, nearly 30% of the world's total oil trade passed through the strait, located between the Persian Gulf and the Gulf of Oman, according to International Energy Agency (IEA) estimates.
The strait is used in regional trade of vegetable oils, especially to/from Persian Gulf countries and India.
As a major importer and re-exporter of refined palm and soyabean oils, India’s shipments from its western ports (like Kandla or Mundra) to Gulf countries may pass through the Strait of Hormuz.
In addition, the strait is part of the route for edible oils shipments to the Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. These shipments - mainly palm oil from Southeast Asia – typically go through the Strait of Malacca, across the Indian Ocean, and then through the Strait of Hormuz to ports like Jebel Ali (UAE) or Dammam (Saudi Arabia).
Meanwhile, Malaysia’s Plantation and Commodities Minister Johari Abdul Ghani said the Iran-Israel conflict was likely to drive up export costs.
Ghani said in a 17 June New Straits Times report that shipping companies were being forced to avoid risky areas and choose alternative routes that were longer or unload goods at safe ports before transporting them by land, leading to increased costs.
As an example, Johari said the cost of sending a container from Malaysia to West Africa used to be around US$1,200 (MYR5,089), but could now reach up to US$3,000 (MYR12,722) and, at one point, hit US$6,000 (MYR25,443) due to geopolitical risks.
“When there is a war like the one between Iran and Israel, the logistics costs of products bound for the region will increase. Transportation costs can rise by up to three times.
“As a country that is highly dependent on international trade, any disruption in the world’s geopolitical landscape will definitely affect us.”
However, he said Malaysia’s commodity industry remained strong as its main markets - namely India, China and the European Union - were still stable and not directly affected by the conflict.
