U.S. Strikes Iranian Nuclear Sites; Iran Closes Strait of Hormuz in Retaliation

It has been reported that the United States authorized the release of airstrikes to three major Iranian nuclear facilities which included Fordow, Natanz, and Isfahan using 30, 000 pound bunker busting bombs. This move which was conducted without the authorization of the U.S conferences has raised tension in the area significantly. Iran has retaliated by labeling the act as violation of its sovereignty and voted to close the strategic Strait of Hormuz which transports oil supplies to many parts of the world. This forms a huge geopolitical twist as the U.S. engaged in unauthorized air strikes on Iranian nuclear sites prompting Iran to say the end of diplomacy and voted to shut the strategic strait of Hormuz. 

Context

• In an important geopolitical event, the U.S carried out unauthorized airstrikes on the nuclear sites in Iran and Iran announced the end of the diplomacy and voted to shut the strategic Strait of Hormuz. 
• The shutdown is a target to the existence of oil in the world and it is of danger to energy security in India, as it depends on oil imports via this gateway.

Key Highlights

U.S. Airstrikes

• Bombing sites: Fordow, Natanz and Isfahan in Iran.
• Arms Deployed: Heavily-loaded bunker-buster bombs.
• Authorization: The United States was not explicitly authorized by the Congress to attack.
• Damage Assessment: President Trump declared the success of the mission; nevertheless, the damage inspection continues.
• International Concern: The validity and conditions of the strike have brought suspicion to the international community.

Iran’s Response

• Diplomatic Stand Abbas Araghchi, the Iranian Foreign Minister said the diplomacy with the U.S. is over.
• Retaliation Plans: Iran suggested that it might collaborate with Russia and pleaded a self-defense right as required under international law.
• Closure of Strait: The parliament of Iran voted to close the strait of Hormuz pending ratification by the Supreme National Security council.

Nuclear Oversight

• UN Atomic watchdog: Certified that there were no direct radioactive leakages after the strikes.
• Long-term Surveillance: This is done through nuclear surveillance in tracking the site activity and environmental risk.

Strait of Hormuz 

• Location: The Persian Gulf and the Gulf of Oman and the Arabian Sea.
• Neighboring states: Iran (north), Oman and UAE (south).

Importance:

• Global Oil Chokepoint: This maritime passageway forms an almost 20 percent chokepoint of the world's oil.
• Navigation Width: 33 km (basically) broad with two 2-mile wide shipping ducts.

Global Impact:

• The nations being harmed by export are Saudi Arabia, Iran, UAE, Kuwait, and Iraq.
• Price Sensitivity: An imbalance may result in severe price fluctuations in the world oil market.
• Security Risk: The strait finds itself most of the time as the hot spot of the Iran-U.S. military tensions.

Effect on Energy Security of India

• Oil Dependency
  • India is an 80% importer of its crude oil, and a major share of the crude oil passes through the strait of Hormuz.
  • Supply Disruption Risk: It is capable of causing inflation, high fueling prices and a deteriorated rupee.
• Mitigation Measures
  • Source Diversification: Diversification of imports with the U.S, Russia, Brazil and West Africa.
  • Strategic Oil Reserves: These involve being built up in storage technology as in Mangalore and Padur to insulate temporary shortages of supply.
  • Hormuz Bypass Routes: India has started importing bypass oil that does not use the Strait of Hormuz and it is less geopolitically vulnerable.
• Economic Consequences
  • Cost Escalation: High increasing crude prices would increase the Current Account Deficit (CAD).
  • Retail Fuel Prices: Will tend to increase, which will impact consumer spending and inflation.
• Long-term Strategy
  • Renewable Energy Push: More spending on solar, wind and biofuels.
  • Electric Vehicles (EV): Increasing the use of EV to cut down oil consumption.
  • Atmanirbhar Bharat: Energy self-sufficiency by using domestic sources of energy.

Conclusion

The U.S. bombings against the Iran nuclear installations have caused the sudden spiking of the geopolitics, predominantly, in the energy-sensitive Gulf. The decision by Iran to possibly lock the Strait of Hormuz puts the world oil markets into jeopardy. It is in this respect that the event underscores the importance of the diversification of sources of energy, strategic reserves, and the long-term transition to clean and autonomous sources of energy among the Indian people. This crisis will have to be dealt with through diplomacy and the mechanism of stability within the region.