Hormuz threat for oil

According to the Iranian state media, the Iranian parliament has already voted to block the Hormuz Strait in retaliation. However, the proposal needs the approval of the country's Supreme National Security Council. Iran currently produces about 3.3 million barrels per day (mbd) of crude oil, exporting 1.8-2.0 mbd. While Iranian oil facilities have reportedly been hit, the extent of damage remains unclear. However, the larger risk lies in a broader regional conflict that could pull in other major oil producers in the Gulf. However, any move to block the strait may put significant cost pressures on India, even though it no longer buys oil directly from Iran due to US sanctions. Crude supplies from Iraq, Saudi Arabia, Kuwait, and the United Arab Emirates, all routed via the Strait of Hormuz, account for nearly half of India’s total imports. About 60% of its natural gas imports also pass through this critical passage. Source- MINT