REPORT: Iran threatens to close key shipping route, the Strait of Hormuz

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From CNBC: 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 it’s possibility has raised the specter of higher energy prices and aggravated geopolitical tensions, with Washington calling upon Beijing to prevent the strait’s closure.

Vanda Hari, founder of energy intelligence firm Vanda Insights, told CNBC’s “Squawk Box Asia” that the possibility of closure remains “absolutely minimalistic.”

Hari said if Iran blocks the strait, it risks hostilities with many of its neighboring oil producing countries, including China, which accounts for a majority of Iranian oil exports.

The New York Post noted in a separate report that the Strait of Hormuz is 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.

Brent crude oil, the international standard, jumped 3.9% to $80 a barrel on Sunday, while US crude rose 4.3% to $77 a barrel.

U.S. Secretary of State Marco Rubio said, “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.”

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