How crucial is the strait of Hormuz to the global energy market?

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How crucial is the strait of Hormuz to the global energy market?  Although Israel and Iran's ceasefire which came into force on Tuesday removed the pending threat of the Strait of Hormuz's closure, this is not the first time that Iran has said it would block it.   READ MORE : http://www.euronews.com/2025/06/25/how-crucial-is-the-strait-of-hormuz-to-the-global-energy-market  Subscribe to our channel. Euronews is available on Dailymotion in 12 languages

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00:00Why is the Strait of Hormuz crucial for the global energy market?

00:10On the 22nd of June, Iran's parliament voted to close the Strait of Hormuz, a retaliation

00:15against Israeli and US strikes on the country aimed at nuclear sites.

00:19For economists, such a move could wreak havoc across global markets.

00:23The final decision to close the strait lies with Iran's Supreme National Security Council,

00:27which has not ordered any closure as of yet and has never carried through past threats.

00:32The checkpoint for oil and natural gas is located between Oman and Iran, connecting the Persian

00:37Gulf with the Gulf of Oman and the Arabian Sea.

00:41In 2024 and early 2025, one-fifth of the world's oil and petroleum product consumption, as well

00:47as liquefied natural gas, flowed through the Strait of Hormuz.

00:52Saudi Arabia moves the most oil, while Qatar exports the most global liquefied natural

00:58gas through the strait.

00:5984% of oil and 83% of natural gas, which went through the strait in 2024, was routed to Asia.

01:07While Europe is less reliant on energy resources flowing through the strait, if it were to close,

01:12it could face the devastating repercussions of rising global oil and gas costs.

01:16In 2024, the average oil barrel price was $81, according to the Brent benchmark.

01:22But analysts forecast prices could exceed $120 per barrel if Iran carries its threats through.

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