International Energy Economic Shock Crisis, Resolution to Blockade the Hormuz Strait in Iran

"1. Introduction

The Strait of Hormuz, often referred to as the heart of global energy flows, is geographically a narrow and limited passage, yet its strategic significance penetrates continents. Through this narrow waterway, over 20 million barrels of oil and countless liquefied natural gas are transported daily, and the industrial ecosystems of major Asian countries, including South Korea, absolutely rely on the stability of this strait. On June 22, 2025, the Iranian Parliament passed a resolution to block the strait in retaliation for the U.S. airstrikes on Iranian nuclear facilities, prompting the international community to once again feel the urgency of the political sparks igniting in the Middle East that could engulf the global economy. Although the final approval of the resolution is still pending, its repercussions are already manifesting in reality. This piece aims to comprehensively review the background and intent of the matter, reactions from related countries, the economic and energy system shocks, and Iran's dilemma, providing insight into the structural instability of the era we face.

2. Main Text

The resolution of the Iranian Parliament is not just a military response but a political declaration symbolizing identity and sovereignty. The American airstrike has been perceived as a national humiliation within Iran, and without a strong response, the legitimacy of the regime could be shaken. Thus, this resolution has emerged as a political mechanism that aims to send a message externally and promote unity internally, within the sensitive balance of Iranian politics—between the hardline stance of the Revolutionary Guards and a pragmatic diplomatic approach. Regardless of its feasibility, it can be interpreted as a calculated signal to secure leverage in diplomatic negotiations.

2-2. Immediate Reactions of Major Countries

The United States has taken a firm stance regarding this movement. Secretary of State Rubio strongly criticized it as an attempt to hold the global economy hostage, while Vice President Joe Biden warned that the Iranian Navy would not be able to handle a full-scale military conflict, stating that the naval forces already deployed in the Middle Eastern waters have entered a state of alert. European and Asian countries have raised their voices in unison, emphasizing the importance of stability in the Strait and embarking on a dual strategy that combines diplomatic channels with military deterrence. In particular, the tension among Asian countries, which are highly dependent on energy, is already being reflected in economic figures.

2-3. Immediate Response and Contagion Effects of the Energy Market

Upon the announcement of the resolution, international oil prices immediately fluctuated. Brent crude prices surged by over 10% in just one day, surpassing the $77 per barrel mark, and experts warn that if the situation worsens, a high oil price era between $130 and $150 could be reinstated. This is not merely a matter of numbers. The fact that energy is becoming a 'weapon' again is causing nervous reactions throughout the entire supply chain structure. Nearly all industries that rely on energy—manufacturing, transportation, trade, insurance—will feel the impact of rising costs and supply and demand instability. Above all, inflationary pressures may narrow the policy response range of central banks and could push the global economy to the brink of stagflation.

2-4. Transference of Anxiety: The Multifaceted Impact of Industry and Policy

The global economy has already transformed into a structure that reacts sensitively to geopolitical risks. If this situation leads to an actual blockade, a global logistics disruption similar to the Suez Canal crisis could be rehashed, and countries would have no choice but to engage in short-term responses such as releasing strategic oil reserves, diversifying raw material supply chains, and strengthening OPEC+ negotiating power. However, there are clear limits to the responses. The shock is felt more directly and rapidly, especially in countries with low energy independence. In contrast, the United States and some oil-producing countries have relatively larger policy leeway to absorb the damage, and some may even have the opportunity to leverage the situation for energy exports.

2-5. Iran's Dilemma: Strategic Authority and Realistic Constraints

It is undeniable that Iran possesses military means to control the Strait of Hormuz. However, the consequences of action would be far greater than imagined. The Strait is not only a major route for Iran's own oil exports but also a lifeline for the import of strategic materials. Furthermore, if a blockade materializes, the likelihood of military intervention by the United States and its allies, as well as increased diplomatic tensions with major trading partners like China and India, will escalate. In other words, the moment Iran blocks the Strait, it will face a dual burden of external pressure and internal economic collapse. For this reason, it appears that Iran has adopted a 'high-risk high-reward strategy' to enhance its bargaining power through symbolic displays of military force, likely focusing on strengthening its diplomatic front rather than taking actual action.

3. Conclusion

The resolution to blockade the Strait of Hormuz is not just a defensive measure by one nation, but a reminder of how vulnerable the world is on an energy structure. Energy geopolitics is re-emerging as the center of attention, and its aftershocks are shaking both international economics and the security order. It is now time to seek mid to long-term strategies beyond short-term responses. There is a need for diversification of the global energy supply chain, the reorganization of crisis response systems, and the restoration of structural dialogues for rebuilding diplomatic trust. Unless a framework of 'collective security and collective energy' is established whereby countries can cooperate beyond their own national interests, this situation may be just the prologue to another repetition. Ultimately, the Strait of Hormuz is not merely a channel through which oil flows, but a narrow bridge precariously balancing the international order of the 21st century. How we navigate it will determine the future direction of the global economy.