The decision to shut down this vital route is seen as a strategy by Iran to pressure Israel and the U.S. to cease their military actions.
The closure of the Hormuz Strait is linked to the U.S. strikes on Iranian targets. Iran intends to use the closure as leverage to influence its adversaries and halt military aggression.
After the Parliament's decision, Iran's Supreme National Security Council began discussing the implementation of the resolution.
The Hormuz Strait lies between Iran and Oman and sees the daily transit of between 16 million and 21 million barrels of oil, accounting for 20% of the global oil transport.
Oil-producing countries in the Organization of the Petroleum Exporting Countries (OPEC), including Iran, Saudi Arabia, the United Arab Emirates (UAE), and Kuwait, heavily rely on this route to export oil, primarily to Asia.
Countries allied with the U.S. also use the route for transporting oil. In response, the U.S. stationed warships in Bahrain to protect commercial vessels passing through the strait.
A closure of Hormuz would severely disrupt the economies of many countries as oil is a key energy source and an essential driver of economic development globally. Economic analysts predict that the price of crude oil could soar from $74 per barrel to between $120 and $130.
Although the closure would significantly harm Iran, which depends heavily on the route for its own oil exports, it would also impact its allies, including China, which imports around 90% of its oil from Iran.
The U.S. Energy Information Administration (EIA) reports that in the first quarter of 2025, Saudi Arabia transported 5.3 million barrels of oil per day through the Strait, Iraq 3.2 million barrels, and the UAE 1.8 million barrels. Iran itself exported 1.5 million barrels per day.
Vandana Hari, founder of energy intelligence firm Vanda Insights, told CNBC's 'Squawk Box Asia' that the possibility of closure remains 'absolutely minimalistic.'
If Iran blocks the strait, the country risks turning its neighboring oil producing countries into enemies and risks hostilities with them, she said.
Furthermore, a closure would also provoke Iran's market in Asia, particularly China, which accounts for a majority of Iranian oil exports.
'So very, very little to be achieved, and a lot of self inflicted harm that Iran could do' Hari said.
However, U.S. Secretary of State Marco Rubio called on China to use its influence with the Iranian government to discourage Tehran from closing the Strait of Hormuz.
"I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil," Rubio, who also serves as national security adviser, told Fox News.
"If they do that, it will be another terrible mistake. It's economic suicide for them if they do it. And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours."
In the past, Iran had threatened to close Hormuz in retaliation against the U.S., but never followed through. This time, attention is on Iran's security council, which will make the final decision.
Rwanda stays alert
Rwanda is one of the countries that imports oil through the Hormuz Strait. For oil to reach Rwanda, it passes through the Arabian Gulf, then through the Indian Ocean to either Mombasa, Kenya, or Dar es Salaam, Tanzania.
During a discussion with parliamentarians on June 19, 2025, Rwanda's Minister of Infrastructure, Dr. Jimmy Gasore, explained that disruptions in the Hormuz Strait could affect Rwanda due to potential price hikes.
'[...] A disruption there would impact the global market, and consequently, Rwanda. We would likely experience a price increase or reduced import volumes,' he said.
Rwanda's Prime Minister, Dr. Edouard Ngirente, informed Parliament that since the emergence of conflict between Israel and Iran on June 13, Rwanda has set up a task force to assess potential impacts on the country.
'We are closely monitoring the situation with daily updates on oil prices, our national reserves, weekly imports, and how it affects shipments from Dar es Salaam or Mombasa,' he said.
Currently, Rwanda has seven oil reserves containing 117.2 million liters of petroleum products, including gasoline, diesel, and aviation fuel. The country has taken steps to build up its reserves to mitigate the effects of fluctuating prices due to international conflicts.
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