If Iran closes Strait of Hormuz regime would be committing 'economic suicide' says US

Iran has been warned that shutting down a crucial Middle East oil "choke point" following US strikes on its nuclear facilities would be tantamount to "economic suicide", as reported by The Telegraph.

US Secretary of State Marco Rubio has called on Iran's allies, including China, to exert pressure on Tehran to keep the Strait of Hormuz open, stating that any closure would be a "terrible mistake".

"I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil," Mr Rubio said during an interview with 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," he continued.

READ MORE: UK military bases on 'highest level' red alert after US bombing of Iran

READ MORE: Inflation 'disaster' looms if Iran's leaders sign off on response to US strikes

In retaliation for US strikes, Iranian lawmakers have voted to obstruct vital shipping routes through this key waterway after Donald Trump decided to engage in the conflict between Israel and Iran, reports the Express.

However, the vote by the Iranian parliament is not definitive, and state television has emphasised that the ultimate decision lies with Iran's top security officials, Reuters reports.

The narrow strait, situated within Iranian territorial waters, is considered the most critical oil transit choke point globally, with approximately one-fifth of all worldwide oil supplies and a third of liquefied natural gas passing through it.

Any efforts to disrupt maritime traffic by deploying mines or missiles could trigger a global oil crisis, skyrocket inflation rates and potentially plunge the economy into a downturn.

On Sunday, specialists cautioned that such a move to shut the strait might also elicit "a significant military response" from both the United States and its allies.

Eurasia Group, a leading consultancy in political risk, advised clients: "The US has amassed a massive military presence in the Gulf and surrounding region, and a move by Iran against the strait would almost certainly trigger a significant military response."

Ami Daniel, CEO of maritime data company Windward, noted that even the mere "perception" of an Iranian assault on shipping could reduce maritime traffic to a mere trickle.

He further remarked: "People are talking about whether they block the Strait of Hormuz, but how about if they just make it very dangerous to go through?".

"Commercial shipping is not the Navy. They don't have to go. So actually, even just increasing the risk to go there will gradually make a big difference versus blocking it completely."

As anxieties mount regarding a fresh oil emergency, countless drivers could be hit with soaring fuel costs at the filling stations. The UK, which relies on imports for roughly half its oil supply, stands to be particularly exposed.

Following President Trump's ultimatum giving Iran two weeks to start talks, crude oil settled around $77 a barrel last Friday, as market players speculated that any immediate conflict was likely to be averted.

Amidst escalating tension, market analysts are bracing for a surge in prices come Monday, as the "risk barometer" skyrockets. There's chatter that we could be looking at $100 a barrel or even higher on the horizon.