One of the world’s most critical oil chokepoints, the Strait of Hormuz is central to discussions and analyses focused on the ongoing Iran-Israel conflict. Located between Oman and Iran, the strait connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is deep and wide enough to accommodate the world’s largest crude oil tankers, making it a vital artery at risk of disruption as tensions between Iran and Israel escalate. Although Iran has threatened to close the strait in the past, it has never followed through. The heightened conflict has reignited fears of such a closure. The strait is just 20 nautical miles wide at its narrowest point, with a significant portion falling within Iran’s territorial waters.
Details of the strait
The Strait of Hormuz derives its name from the ancient Persian city of Hormuz, located on an island in the strait. The island was a major trading hub for centuries, controlling maritime routes in the Persian Gulf. Historically, the strait was a key part of the Silk Road’s maritime extensions, facilitating trade between Asia, the Middle East, and Europe. The U.S. Navy’s Fifth Fleet, based in Bahrain, regularly patrols the Strait of Hormuz to ensure safe passage of commercial vessels. Also, Iran maintains a network of small, fast-attack boats and anti-ship missiles along its coastline, designed to disrupt strait traffic in a potential conflict. The strait has been associated with various conflicts in past, For example, during the Iran-Iraq War (1980–1988), the so-called “Tanker War” saw both sides attacking oil tankers in the strait, leading to U.S. naval intervention to protect Kuwaiti vessels.
Why Is the World Concerned About its closure?
The Strait of Hormuz is a critical oil chokepoint. These narrow channels along widely used global sea routes are essential to global energy security. Any disruption to oil transit through a major chokepoint, even temporarily, can cause significant supply delays and raise shipping costs, potentially driving up global energy prices. While some chokepoints have alternative routes, these often add significant transit time. For the Strait of Hormuz, pipeline alternatives exist but are comparatively inefficient. Approximately one-fifth of the world’s total oil consumption passes through this strait. In 2024, oil flow through the strait averaged 20 million barrels per day (b/d), equivalent to about 20% of global petroleum liquids consumption. OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq export most of their crude via the strait, primarily to Asia. Qatar, one of the largest exporters of liquefied natural gas (LNG), sends nearly all its LNG through the strait. In 2024, 84% of the crude oil and condensate and 83% of the LNG that moved through the Strait of Hormuz went to Asian markets. The International Energy Agency (IEA) has warned, “Iran has repeatedly threatened to close the key Strait of Hormuz if attacked. Closure of the strait, even for a limited period, would have a major impact on global oil and gas markets.”
What Happens if Iran Closes the Strait of Hormuz?
Iran views the Strait of Hormuz as a strategic pressure point in conflicts. However, Iran does not exclusively control the strait. While it borders the northern side and controls some islands within it, the strait is also bordered by Oman and the United Arab Emirates. Since a significant portion of the strait falls within Iran’s territorial waters, its actions could disrupt oil markets. Over 3,000 commercial ships use the strait monthly to transport oil, natural gas, and goods from Gulf countries to global markets. Oil prices surged on Tuesday as the conflict intensified and U.S. President Donald Trump reiterated his support for Israel. A blockade could trigger energy disruptions, inflation, and trade delays, potentially sending stock markets into a tailspin, especially in oil-sensitive sectors. Ironically, Israel would face no direct consequences from a Strait of Hormuz blockade. Its estimated consumption of 220,000 barrels of crude per day comes via the Mediterranean from countries like Azerbaijan (via the Baku–Tbilisi–Ceyhan pipeline through Türkiye), the U.S., Brazil, Gabon, and Nigeria.
As the Iran-Israel conflict simmers, the Strait of Hormuz could become a flashpoint reshaping global energy dynamics. If Iran escalates by disrupting the strait’s 20 million barrels daily flow, oil prices might soar, potentially triggering a recession in some key economies. Asian markets, heavily reliant on Gulf exports, could pivot to costlier alternatives, while Europe’s LNG supply faces strain. Israel’s Mediterranean oil routes insulate it, but global inflation could still sting. Diplomacy remains critical to prevent this narrow waterway from dictating the world’s economic future.
(Pooja Mishra is a Content Researcher at DD India)