Blocking Strait of Hormuz vital oil route would be 'economic suicide' promises Marco Rubio

Iran has been told that closing a major Middle East oil "choke point" in response to US strikes on its nuclear sites would amount to "economic suicide" reports The Telegraph.

US Secretary of State Marco Rubio urged Iran's allies - including China - to lean on Tehran and prevent the closure of the Strait of Hormuz, warning it would be a "terrible mistake".

"I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil," Mr Rubio told Fox News.

"If they do that, it will be another terrible mistake. It's economic suicide for them if they do it. And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours," he added.

Iranian lawmakers voted to hit back at US strikes by cutting off vital shipping lanes through the key waterway after Donald Trump decided to enter the war between Israel and Iran.

However, the Iranian parliament's vote is not binding and state television stressed that any final decision rests with top Iranian security chiefs, according to Reuters.

The narrow strait, which lies in Iranian territorial waters, is regarded as the most important oil choke point on the planet and is the route out of the Persian Gulf. It sees around one fifth of all global oil supplies and a third of liquefied natural gas pass through it.

Any attempt to block shipping - by using mines or missiles - could cause a worldwide oil shock, drive up inflation and risk tipping the world into recession.

Analysts warned on Sunday that closing the strait could also provoke "a significant military response" from America and its allies.

Eurasia Group, the political risk consultancy, told its clients: "The US has amassed a massive military presence in the Gulf and surrounding region, and a move by Iran against the strait would almost certainly trigger a significant military response."

Ami Daniel, chief executive of maritime data firm Windward, said that even the "perception" of an Iranian attack on vessels could slow shipping to a trickle.

He added: "People are talking about whether they block the Strait of Hormuz, but how about if they just make it very dangerous to go through?

"Commercial shipping is not the Navy. They don't have to go. So actually, even just increasing the risk to go there will gradually make a big difference versus blocking it completely."

And as fears grow over a new oil crisis, millions of motorists could face higher fuel prices at the pumps. The UK, which imports around half of its oil, could be especially vulnerable.

Crude oil closed at around $77 a barrel on Friday after Mr Trump gave Iran two weeks to enter talks - prompting traders to assume an immediate clash would be avoided.

But with tension high, analysts expect prices to spike on Monday as the "risk barometer" jumps, with warnings that $100 a barrel or more could follow.