US warns Iran against closing Strait of Hormuz, calling it 'economic suicide'; urges China to intervene amid rising tensions

Amid the ongoing Iran-Israel war tensions and since the US's attack on Iran's key nuclear sites, US Secretary of State Marco Rubio reacted to the Iranian parliament's approval to close the Strait of Hormuz, saying it would be "economic suicide".

While speaking to Fox News, Rubio urged China to persuade Iran against closing the Strait of Hormuz to US strikes on Iranian nuclear facilities.?

According to Bloomberg, the Strait of Hormuz is located between Iran and its Gulf neighbours and serves as a key passageway for nearly 20 per cent of the world's daily oil shipments.?

'It's economic suicide for them if they do it'

In another report in Reuters, Rubio stated that he encourages the Chinese government in Beijing to contact them about this because they are heavily dependent on the Strait of Hormuz for their oil.?

"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, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours," he said.?

The Secretary of State also warned that shutting down the strait would be a major escalation, likely prompting a response from the US and its allies.?

Credit: X | @krassenstein

What does Iran's closure of the Strait of Hormuz mean to the rest of the world?

On Sunday, after the US airstrikes on its nuclear sites, Iran is considering a closure of the Strait of Hormuz, reported EuroNews.?

The US Energy Information Administration (EIA) reported that in 2024 and the first quarter of 2025, over 25 per cent of the world's seaborne oil trade and roughly 20 per cent of global oil and petroleum product consumption passed through the Strait of Hormuz.?

Additionally, about one-fifth of the global liquefied natural gas trade, mainly originating from Qatar, also moved through the strait during this period.?

According to the EIA, Saudi Aramco operates the East-West crude oil pipeline, which has a capacity of 5 million barrels per day and runs from the Abqaiq processing facility near the Persian Gulf to the Yanbu port on the Red Sea.?

If the Strait of Hormuz is seen as a high-risk area, insurance costs and security requirements will spike, raising shipping expenses for everyone involved.?