Iran may be threatening to close the Strait of Hormuz but experts told
CNBC that it’s also the one with the most to lose.
In major move after U.S. struck Iranian nuclear sites, the country’s parliament on Sunday reportedly approved the closure of the Strait of Hormuz, risking alienating its neighbors and trade partners.
The decision to close the waterway now rests with the the country’s national security council, and its possibility has raised the specter of higher energy prices and aggravated geopolitical tensions, with Washington calling upon Beijing to prevent the strait’s closure.
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.
