Iran’s parliament has decided to shut down the Strait of Hormuz, which is known as the vital shipping channel through which nearly 20% of the world’s daily oil flows.

The move would end up blocking $1 billion in oil shipments per day, and would also send global oil prices to a new high.

The news would come into effect after pending approval from the country’s Supreme Council. This decision would be made tonight as per the country’s state-run Press TV.

Iran’s major escalation in reply to US strikes on its nuclear facilities would be done whenever it was necessary, the country’s commander in the Revolutionary Guards shared on Sunday.

The strait connects the Gulf of Oman with the Persian Gulf and is considered to be one of the world’s most crucial chokepoints, which is just 20 miles wide at its narrowest point.

Shipping lanes inside the strait, which is the area that’s deep enough for ships to pass, are said to be even narrower, at less than two miles wide in every direction, making them so much more vulnerable to attacks and threats of closure.