We study theoretically orbital effects of a parallel magnetic field applied to a disordered superconducting film. We find that the field reduces the phase stiffness and leads to strong quantum phase fluctuations driving the system into an insulating behavior. This microscopic model shows that the critical field decreases with the sheet resistance, in agreement with recent experimental results. The predictions of this model can be used to discriminate spin and orbital effects. We find that experiments conducted by A. Johansson textit{et al.} are more consistent with the orbital mechanism.