What Happens If The Strait Of Hormuz Is Closed? This Is The Effect For Indonesia

YOGYAKARTA The Iranian war of Israel sparked the threat of closing the Strait of Hormuz. The closure of the trade line will have a major impact on global trade. Of course, the threat triggers concerns in various countries including Indonesia. Then, what happens if the Strait of Hormuz is closed?

Please note, the Strait of Hormuz is the most strategic oil transit point in the world. This route only has a width of 33 kilometers and separates Iran from Oman. Even in the form of a narrow route, the Strait of Hormuz is passed by oil carriers from various countries. Even the number of oil carriers passing through this route is 20 percent of global consumption.

Many are concerned about the impact of the closure of the Strait of Hormuz. If the closure of the Strait of Hormuz is prolonged, it is strongly suspected that it will trigger a global energy crisis. Even the impact is widening not only in the energy sector.

Its noodle price has the great potential to soar to reach $150 per barrel. The jump will certainly spread to financial markets that have an impact on the economy. Not only does it stop in the energy sector, the supply chain of all industries will also be disrupted.

It is suspected that there will be domino effects felt by the transportation, manufacturing, and retail sectors. In the end, these effects trigger a surge in costs and of course will sacrifice consumers in various countries including Indonesia. However, these conditions are not always negative for Indonesia.

Quoted from Antara, the Director of Economics Center of Economics and Law Studies (Celios) Nailul Huda explained that there is a potential profit that can be achieved due to the closure of the Strait of Hormuz. He assessed that Indonesian commodity exports could benefit from the closure.

"Indonesia also benefits from this increase in global oil prices because Indonesia's exports will be more expensive," Nailul explained, quoted from Antara, Thursday.

Even so, the government is asked to anticipate other possibilities that arise due to the closure of the Strait of Hormuz. One of the possibilities in question is the increase in world oil prices.

That's information regarding what happens if the Strait of Hormuz is closed. Visit VOI.id to get more interesting information.