Baghdad: Iran’s Press TV reported on Sunday that the decision to close the Strait of Hormuz is subject to the approval of Iran’s Supreme National Security Council, after reports indicated that Parliament had approved the measure. The decision to close the strait, through which approximately 20% of global oil and gas flows, has not yet been decided. However, Deputy Commander of the Iranian Revolutionary Guards Esmail Kowsari told the Young Journalists Club on Sunday that closing the strait is on the table and “a decision will be made if necessary.”

According to National Iraqi News Agency, the Strait of Hormuz has returned to the forefront of events amid escalating tensions between Iran and Israel, amid warnings from energy companies and growing concerns in shipping and insurance markets. Over the past few days, since the start of the Israeli attacks on Iran on June 13, Iran has repeatedly threatened to close the Strait of Hormuz.

More than 21 million barrels of oil pass through the Strait of Hormuz daily, along with a third of liquefied natural gas exports, making it one of the world’s most sensitive chokepoints. With tensions escalating, shipping companies have begun avoiding passage through it, and insurance rates for ships have risen by more than 60%.

Iran itself relies on the Strait of Hormuz for its oil exports and imports. Any closure would also harm its allies, most notably China, which imports more than 75% of Iran’s oil exports. JP Morgan analysts believe that closing the strait would have a negative impact on the Iranian economy, while RBC Capital Markets asserts that the presence of the US Fifth Fleet in Bahrain makes this threat difficult to implement.