Two weeks have passed since the Iran war started. The Strait of Hormuz is still blocked. And now, people around the world are feeling the pain.

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india-gas-shortage-strait-of-hormuz-crisis

In India, people are standing in long lines just to buy gas cylinders. Gas agents in many cities are saying the same thing, "Gas is finished." Some have already closed their shops and gone home.

Restaurants are worried too. Many restaurant owners say if things do not get better in two or three days, they will have to shut down completely.

Factories and industries are also in trouble. Some have already stopped working. Others have reduced their work because there is no gas available.

It Is Not Just India

This problem is not only in India. It is happening everywhere.
  • In Thailand and Vietnam, companies are asking workers to work from home.
  • In Pakistan, there is an emergency-like situation. Schools and universities are closing down.
  • In Australia, the government has lowered its fuel quality standards. They are now allowing fuel with more sulfur just to keep supply going.
Air New Zealand is cutting flights because fuel costs have gone up too much.

What Is the Strait of Hormuz and Why Does It Matter?

The Strait of Hormuz is a narrow water passage in the Middle East. A huge amount of the world's oil and gas passes through it every day.

When Iran blocked this strait, oil and gas stopped flowing to many countries. This is why fuel prices are rising and supply is falling everywhere.

The biggest worry is that the United States military cannot reopen the strait by force. Even though the US has the world's largest military, it has not been able to force Iran to open the passage.

Norway has already said its ships will not even try to pass through the strait. Two big shipping companies — Maersk and Hapag-Lloyd — have stopped all shipments to Gulf countries through the Strait of Hormuz.

The Bigger Danger: A Food Crisis

Right now, everyone is talking about the energy shock. But a food crisis could be coming next.

Here is a scary fact: 43% of the world's urea exports come from Gulf countries. This urea passes through the Strait of Hormuz.

Urea is used to make fertilizer. Fertilizer helps farmers grow food. No urea means no fertilizer. No fertilizer means less food.

In India, there is already a shortage of fertilizer in many areas. If the strait stays closed for a long time, the current harvesting season will be lost. An entire farming season could be wasted. That would mean serious food problems for millions of people.

India Is Talking to Iran, But It Is Complicated

India's Foreign Minister has been talking to Iran's Foreign Minister many times in recent days. Reports say Iran's Foreign Minister agreed to allow Indian oil tankers to pass through the strait.

But then, the IRGC (Iran's Revolutionary Guard) said no. They believe India is too close to the United States and Israel. Countries that are close allies of the US and Israel will not get easy permission to move tankers.

Some Indian tankers have been allowed through. But experts say India should not expect a free pass every time. Iran may ask for something in return. They might ask India to publicly criticize the US and Israel for their actions.

What Should India Learn from This?

India depends heavily on the Strait of Hormuz for its energy needs. Indian planners did not prepare for this situation. Many people assumed that because India is close to America, everything would be fine.

But clearly, America cannot solve this problem. The US military has admitted it cannot reopen the strait.

This is a wake-up call for India to think about energy security in a new way.

The situation is getting worse every day. If the Strait of Hormuz stays closed for months, the world could face its worst energy and food crisis in decades.