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* World

# What Is the Strait of Hormuz and What Impact Could It Have on International Trade If Iran Closes It?

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<!-- video src="https://cdn.jwplayer.com/manifests/gXjkydv3.m3u8" -->
## Video: What Is the Strait of Hormuz and What Impact Could It Have on International Trade If Iran Closes It?

[Watch (HLS stream): What Is the Strait of Hormuz and What Impact Could It Have on International Trade If Iran Closes It?](https://cdn.jwplayer.com/manifests/gXjkydv3.m3u8) (1:06)

![What Is the Strait of Hormuz and What Impact Could It Have on International Trade If Iran Closes It?](https://cdn.jwplayer.com/v2/media/gXjkydv3/poster.jpg?width=720)

_Published 2025-06-24. The war between Israel and Iran has raised concerns that Iran could try to close the Strait of Hormuz, the world’s most important oil chokepoint._


---

Jun 24, 2025 6:20 PM UTC

---

## More From This Series

[All Videos](https://time.com/video/)

[Trump Says U.S. and Iran Have Reached a Deal to End War and Reopen the Strait of Hormuz](/video/XZkCLOia/)

### Trump Says U.S. and Iran Have Reached a Deal to End War and Reopen the Strait of Hormuz

[Iran Denies the U.S. Destroyed a Drone in the Strait of Hormuz](/video/NRnExQ7X/)

### Iran Denies the U.S. Destroyed a Drone in the Strait of Hormuz

[British Naval Analyst on Strait of Hormuz Confrontation](/video/bVopfAvz/)

### British Naval Analyst on Strait of Hormuz Confrontation

---


## Transcript

There are concerns that Iran might close the Strait of Hormuz in retaliation for U.S. involvement. And that's a concern because the Strait of Hormuz is the world's most important chokepoint for shipments of oil. It's a narrow sea passage at the end of the Persian Gulf between Iran and Oman, and it carries a lot of oil from the Gulf producers, mostly to Asia. And if it were blocked, analysts say that the price of oil might skyrocket from around $78 a barrel now to a potential 120 or $130 a barrel, which would lead to inflation around the world. There are lots of reasons, however, why Iran would not do that.

And one reason is Iran would cut off its own oil exports. It would be harming its own best customer for oil, which is China. And there's an assumption also that the U.S. would use force in terms of the U.S. Navy to reopen the Strait of Hormuz and would bring further U.S. involvement in the war.

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