Prolonged Closure of Strait of Hormuz Could Trigger Severe Economic Impact, Says Alan Eyre

Washington: Former US State Department official Alan Eyre has warned that a prolonged disruption in the Strait of Hormuz could lead to increasingly serious economic consequences for the global economy.

Speaking in an interview with Al Jazeera, Eyre said the United States is facing a complicated crisis with no clear or easy solution.

He explained that although China may not support Iran’s proposed toll-based shipping system in the strategic waterway, Beijing’s position could soften if Chinese cargo vessels continue receiving unrestricted access through the route.

According to Eyre, if Chinese ships are allowed to move freely through the Strait of Hormuz despite new Iranian regulations, China may have little motivation to pressure Tehran into abandoning the proposed maritime control framework.

The former US diplomat also noted that, in practical terms, he does not expect recent high-level talks between the United States and China to result in stronger joint pressure on Iran regarding control of the vital shipping corridor.

Analysts believe the Strait of Hormuz remains one of the world’s most critical energy transit routes, carrying a significant share of global oil exports. Any extended disruption in the passage could impact fuel prices, international trade, and financial markets worldwide.