Russian expert: Closing the Strait of Hormuz will be a problem for India and China!
TASS published an expert article on June 15.
On the evening of June 13, Israel launched the "Lion Action" against Iran's nuclear program. Less than a day later, Iran retaliated.
It is reported that Iran is discussing closing the Strait of Hormuz.
Russian expert Gapoyanko said that if Iran closes the Strait of Hormuz, it will lead to a sharp rise in oil prices, which will pose a serious challenge to India, China, Japan, and European countries.
The Strait of Hormuz supplies 30% of the world's liquefied natural gas and exports 20% of the world's oil and petroleum products.
Experts reminded that in May 2019, Iran warned that any intervention in Iranian oil exports might cause serious consequences, causing concern among market participants and leading to a rise in oil prices.
Experts believe that the closure of the strait will inevitably affect world oil prices. Although there are modern technologies for production and storage of hydrocarbons, the lack of raw material supply will greatly increase fuel costs.
This will be a major test for major oil-consuming countries such as China and India, as their economies heavily rely on stable energy supplies.
A sharp rise in oil prices will increase inflationary pressures around the world and complicate the economic situation.
He pointed out that increasing investment in wind power, solar power, and hydropower will reduce dependence on fossil fuels and enhance the economy's resilience to external shocks.
Source: https://www.toutiao.com/article/1835034994708547/
Disclaimer: The article only represents the views of the author.