US energy production counters Iran’s threat to shut down the Strait of Hormuz
Jeff Sica, founder of Circle Squared Alternative Investments, will respond to the market following a successful US strike at Iran’s major nuclear weapons facility.
Iran threatened to shut down one of the most important things in the world Transport lanes for oil In response to the US joining Israel to attack Iran’s nuclear facilities, US energy production will limit the impact of such a move on the US economy.
Iran’s national media suggested that the Parliament has approved a potential plan to see Iran’s military attempt to use sea mountains, ship mines or other measures to close the Strait of Hormuz to pursue its goals. The Trump administration announced a potential ceasefire between Israel and Iran on Monday.
About a fifth of the world’s daily oil consumption travels through the Strait of Hormuz every day with tankers, with less than 30 miles of straight lines making transport vulnerable to potential. Threat from Iran. Furthermore, about a fifth of the world’s liquefied natural gas trade passed through the Strait of Hormuz in 2024, according to the Energy Information Agency (EIA).
Among the potential threats to energy supply in the Strait of Hormuz, US domestic energy production will help reduce the US economy’s reliance on energy sourced from the Middle East, allowing future price shocks and potential oil prices from potential worst-case scenarios to curb the economy.
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Iranian troops have long threatened to close the Strait of Hormuz during times of regional tensions. (Photo by Morteza Nikoubazl/Nurphoto via Getty Images/Getty Images)
“An end-of-life scenario, such as when oil (shipping) was closed in the Strait of Hormuz, forecasts that would rise to $100 by $100 barrel may be true in a world where the Strait of Hormuz can actually be closed,” said Philflin, a senior market analyst at Price Futures Group and FOX business contributors, in an interview.
“Now I don’t think the market believes it is possible,” Flynn said. “Iran probably doesn’t have the ability to close the Strait of Hormuz, and if they can close the measurable time, it could have a big impact.
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The US military took a strike against Iran’s nuclear facility on June 21, 2025. (Fox News/Fox News)
Flynn went on to say that US energy production has risen over the past decade and is producing more than it is currently consuming. This is in stark contrast to the past in which the US was heavily dependent on energy from the Middle East.
“The US produces record amounts of oil,” Flynn said. Iran’s hostage crisis In 1979, the US was much more dependent on oil from the Middle East. “If they had closed the Strait of Hormuz back then it would have been a devastating blow not only to our economy but to the world economy.”
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The Hormuz Strait is a key chokepoint in the global energy supply. (Reuters/Hamad I Mohammed/Reuters)
“Here we are a few years from now and yet we still see 20% of the world’s supply routinely passing through the Strait of Hormuz, despite its importance. It’s not as big as it used to be, and the US isn’t as dependent as we do. In fact, much of that oil goes to China.
Data from the EIA shows that in 2024 the US exported a record 30.9 quarters of UK heat units, up 4% from the previous year, with energy imports flat at 21.7 quads. It left the US Online export 9.3 Quad – The highest recorded net export level in the institutional records dating back to 1949.
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“The buffers we built for US energy production changed some of those ending scenarios. If the straits were closed, we cannot underestimate the possibility that it would cause a major price spike,” he said. “It’s becoming difficult to imagine a scenario where it can be done for a long time now.”