Iran orders closure of Strait of Hormuz — putting one-fifth of world’s oil supply at risk

Iran’s parliament has voted to close the Strait of Hormuz, the vital shipping channel through which around 20% of the world’s daily oil flows.
The move, which could block $1 billion in oil shipments per day, is likely to send oil prices soaring.

It will come into effect pending a final decision by Iran’s Supreme Council.
The Supreme Council’s decision must be made by tonight, according to Iran’s state-run Press TV.

Iran’s major escalation in response to US strikes on its nuclear facilities “will be done whenever necessary,” Email Kosari, Commander in the Revolutionary Guards, said on Sunday.

The strait connecting the Gulf of Oman with the Persian Gulf is one of the world’s most critical chokepoints — just 20 miles wide at its narrowest point.
Shipping lanes in the strait — the area that is deep enough for ships to pass — are even narrower at less than two miles wide in each direction, making them much more vulnerable to attacks and threats of closure.

Iran orders closure of Strait of Hormuz — putting one-fifth of world’s oil supply at risk

Iran’s parliament has voted to close the Strait of Hormuz, the vital shipping channel through which around 20% of the world’s daily oil flows.

nypost.com

 

[mattfivefour]

Item is setting itself up for total destruction. The only easy to avoid this is to eliminate the head and his mullahs.

 

[1LoverofGod]

"Crush a fool in a mortar with a pestle along with crushed grain, yet his folly will not depart from him.".
Proverbs 27:22

Iran’s oil exports plummet by over 90%​

The Islamic Republic’s oil exports have fallen from around 2.5 million barrels per day to just 150,000 barrels following the outbreak of war with Israel, according to figures obtained by Israel Hayom.

This chokes off one of Tehran’s most important revenue streams.

Iran has 10% of the world’s proven oil reserves and 15% of its gas reserves, but it has been suffering from an energy crisis since 2024.

Iran's oil exports plummet by over 90%

The petroleum issue has become central to President Donald Trump's considerations regarding a possible U.S. military strike.

www.jns.org

 

[Margery]

"Crush a fool in a mortar with a pestle along with crushed grain, yet his folly will not depart from him.".
Proverbs 27:22

Iran’s oil exports plummet by over 90%​

The Islamic Republic’s oil exports have fallen from around 2.5 million barrels per day to just 150,000 barrels following the outbreak of war with Israel, according to figures obtained by Israel Hayom.

This chokes off one of Tehran’s most important revenue streams.

Iran has 10% of the world’s proven oil reserves and 15% of its gas reserves, but it has been suffering from an energy crisis since 2024.

Iran's oil exports plummet by over 90%

The petroleum issue has become central to President Donald Trump's considerations regarding a possible U.S. military strike.

www.jns.org

Good article.

Glad they pointed out that China is buying their oil. In fact they supply most of China's need for oil, paying Iran in Chinese currency to avoid the US petrodollar and it's sanctions.

This is going to impact China very soon.

 

[Ghoti Ichthus]

Guess it's time to see if I can still ride my old bike. Last time I tried, no bueno.

If not, maybe time for an etrike or other no-petro old people conveyance.

 

[mattfivefour]

Andrea and I love our 3-wheel bikes! And they are a lot safer at our age than our two wheelers.

 

[Ghoti Ichthus]

Andrea and I love our 3-wheel bikes! And they are a lot safer at our age than our two wheelers.

e-trikes, or pedal-power only? If electric, do they have throttle, or just pedal-assist?

Which one(s) do you have?

 

[mattfivefour]

Viribus. 7-speed, disc brakes, pedal only.

 

[Spartan Sprinter]

Far out im going to cringe what petrol/gas is going to cost

 

[Andiamo]

So how quickly can we get the US energy independent again? We were before during Trumps first term and then Biden & Co ruined that.

 

[1LoverofGod]

So how quickly can we get the US energy independent again? We were before during Trumps first term and then Biden & Co ruined that.

I saw your post and did a short dig and found this ...

U.S. Sits on Billions of Untapped Oil Barrels​

Sun, June 22, 2025 at 4:00 PM PDT 4 min read


The United States is the largest oil and gas producer in the world. It is also experiencing a slowdown in its oil production for a number of reasons, including natural depletion. The U.S. Geological Survey, however, has just published a study stating that there are almost 30 billion new barrels of untapped oil—under federal lands, no less.

Oil and gas drilling was a contentious topic during the Biden administration. The administration decidedly did not like it and put a serious effort into curbing this drilling as much as the law allowed. As soon as Donald Trump became president, the tables turned and drilling on federal lands became very much a desirable direction for federal energy policy to move in, with the President prioritizing affordable energy and higher exports.

Now, the U.S. Geological Survey has thrown its weight behind the American energy dominance idea, reporting estimated undiscovered oil reserves of 29.4 billion barrels across the country, with the leader being Alaska with 14.46 billion barrels of untapped oil under federal lands. New Mexico is next, with 8.925 billion barrels of undiscovered oil, followed by Nevada, with 1.4 billion barrels. Untapped gas reserves on federal land were estimated at over 391.55 trillion cu ft. Now, the only question is when these hitherto untapped resources will be tapped.

The number of drilling rigs in the U.S. oil patch has been on a steady decline recently, reflecting an extended weakness in international prices. This has now changed, of course, after Israel attacked Iran on June 13, but the industry is in no rush to reverse course for the time being. The industry is playing it safe, not least because cheap drilling sites are running out—or maybe not, if the USGS assessment of untapped resources is correct.

For years now, the biggest production growth driver of U.S. oil has been the Permian Basin, spanning Texas and New Mexico. The Permian has single-handedly offset declines in a number of other shale plays and largely uneventful day-to-day business in conventional fields. But the Permian is not inexhaustible, and more importantly, it’s not cheap to drill everywhere there. So, costs are rising in the Permian as some parts of the play hit their geological limits while others, yet to be drilled, are not expected to be as prolific as that top-tier acreage that the industry is running out of currently.

For Complete Article:

https://finance.yahoo.com/news/u-sits-billions-untapped-oil-230000479.html

 

[Hol]

Strait Of Hormuz: Why Iran Is Unlikely To Block Key Oil Shipping Route​

Saudi Arabia, Kuwait, Iraq, Iran and to an extent United Arab Emirates’ crude roughly equating to 30% of the world’s traded oil, as well as oil products, liquefied natural gas cargoes (equal to 20% of the global LNG trade primarily from Qatar) and one-third of the world’s liquified petroleum gas shipments, pass through the Strait daily, according to Lloyds List.

That’s around 30 to 33 million barrels of oil equivalent per day. The figure includes 21 million barrels per day of crude oil and products, or a fifth of the world’s supply. So, will the Iranians attempt to shut the Strait—and can they? While they certainly can for a short period, here’s why they probably won't.

…

Thirdly, such an event, however temporary, has partially lost its potency given that not all regional crude exports would be knocked offline. Key exporters Saudi Arabia and the UAE have pipeline fallbacks to pivot to.

In the case of the Saudis, 5.1 million bpd can potentially be moved via the East-West pipeline and loaded up from the Red Sea. Although that is currently susceptible to attacks by Iran-backed Houthi rebel forces in Yemen.

The UAE is much better placed. Its Abu Dhabi to Fujairah pipeline—which went onstream in 2012—has a capacity of 1.5 million bpd. Its end point—the port of Fujairah—is the only one of the seven emirates that make up the UAE with a coastline solely on the Gulf of Oman and not on the Persian Gulf that Iran persistently threatens to cut off. The port, which bypasses the Strait, has the capability to dispatch close to 75% of the UAE’s total crude output if needed.

However, minor skirmishes and general nuisance in the Strait by Iran’s Islamic Revolutionary Guard Corps or Pasdaran cannot be ruled out, including but not limited to attacks on energy cargoes that aren’t for instance destined for Iran’s primary client—China.

Can Iran Close Strait Of Hormuz After U.S. Attack On Its Nuclear Sites?

Possibility of Iran shutting the Strait of Hormuz, a key lane for Middle Eastern oil and gas shipments, is remote despite U.S. attacks on its nuclear sites. Here's why.

www.forbes.com

 

[Ghoti Ichthus]

From a long-term strategic perspective . . . the country that uses up its oil last wins.

From a very selfish perspective, I'd rather burn everyone else's oil first.

 

[Tall Timbers]

From a long-term strategic perspective . . . the country that uses up its oil last wins.

From a very selfish perspective, I'd rather burn everyone else's oil first.

I don't think anyone harvesting oil will run out of it. The world will run out of time, first.