'Economic Suicide': Marco Rubio Warns Iran Against Bid To Close The Strait Of Hormuz

Washington: After Iran's decision to close the Strait of Hormuz, US Secretary of State Marco Rubio has cautioned Iran against attempting to close the strategically vital strait, stating that such a move would be economic suicide for the Islamic Republic. He asserted that the closure would disrupt oil transportation, triggering a global recession and impacting economies worldwide, including Iran. Rubio's remarks are considered to be crucial amid heightened tensions in the Middle East following the US airstrikes on Iranian nuclear facilities on Saturday.

The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Arabian Sea and the Indian Ocean, is a critical artery for global energy trade. As per information, nearly 20% of the world's oil and gas supply flows through this strait, making it a crucial chokepoint, and any disruption to this waterway would have far-reaching consequences for the global economy.

The experts suggested that the closure of the Strait of Hormuz would have huge global implications, including a spike in oil prices and economic instability. India, which imports around 40% of its crude oil through this route, would be particularly affected. The global economy would suffer greatly if the strait is closed, and the US would likely take measures to ensure the free flow of oil.

Regime Change Not The Goal: Rubio

Responding to Iran's decision to close the Strait of Hormuz, during an appearance on Fox News, Marco Rubio asserted that closing the strait would be a grave mistake. "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," he said. Rubio also warned Iran against any retaliation against the US, stating that such an action would be "the worst mistake they've ever made."

Despite the escalating tensions, US Secretary of State Rubio stressed that diplomacy is still an option. "What happens next will now depend on what Iran chooses to do next. If they choose the path of diplomacy, we're ready. We can do a deal that's good for them, the Iranian people, and good for the world. If they choose another route, then there'll be consequences," he said in an interview with CBS News.

Rubio reiterated that regime change is not the goal of the United States, and the offer for diplomacy with Iran is still open. "The President said very clearly, we have 60 days to make progress on a deal, and if we don't, I'm going to deal with it differently... [Our military] went in, they did what they needed to do with precision and skill that no other military in the world can do, and they left," the US Secretary of State added.

US Military Action Hailed

The US military action against Iranian nuclear facilities has been described as a demonstration of the country's capabilities. Rubio said, "There is no country in the world that can do what the United States did last night... It was executed with extraordinary skill, and I think it demonstrates the capabilities we have."

The United States launched airstrikes on three key Iranian nuclear facilities. US President Donald Trump confirmed that the strikes were successful, with claims that the facilities were completely and fully obliterated. The operation, code-named 'Operation Midnight Hammer', involved B-2 bombers and Tomahawk missiles, causing severe damage and destruction to the facilities.

What Is The Strait Of Hormuz?

The Strait of Hormuz is a vital shipping lane connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. This waterway plays a crucial role in global energy trade. 

The strait is responsible for transporting around 20-21% of the world's daily oil consumption, around 18-20 million barrels per day. Major oil producers like Saudi Arabia, Iran, Iraq, Kuwait, and the UAE rely heavily on this route to export crude oil to global markets, particularly Asia. This water passage is also critical for liquefied natural gas (LNG) exports, with Qatar, one of the world's largest LNG exporters, relying on it for shipments.

A closure of the strait would be immense for global markets, possibly driving oil prices to $120-$130 per barrel. Moreover, the alternative routes, such as Saudi Arabia's East-West Pipeline and the UAE's Fujairah Pipeline, can only handle a fraction of the strait's volume.

The Strait of Hormuz has been a focal point of regional and international geopolitical tensions, with Iran frequently threatening to close it in response to Western pressure. The strait's strategic location makes it vulnerable to disruptions, and any perceived danger in the region would lead to increased insurance and security measures, making shipping more expensive.

Strategically, to ensure the strait's security, naval presence is maintained by the US, UK, and allied navies. The US Fifth Fleet, based in Bahrain, plays a crucial role in protecting commercial shipping in the area.

Iran's Response On US Strikes

Meanwhile, Iran has vowed retaliation, with Supreme Leader Ayatollah Ali Khamenei's representative urging an attack on US forces and closure of the Strait of Hormuz. The conflict has escalated in the West Asian region, raising fears of instability in the Middle East countries with US military bases. The global economy would suffer greatly if the strait is closed, with oil prices surging and inflation rising.

British Airways and Singapore Airlines have cancelled or diverted flights to the Persian Gulf due to airspace restrictions and safety concerns. The conflict could disrupt trade corridors, including the Pakistan-Iran-Turkey freight corridor, and impact Pakistan's regional trade ambitions. Moreover, a dramatic rise in oil prices, due to the escalating tensions, could damage a global economy already strained by US tariffs.