Key Points
- Rising Iran-Israel tensions have raised fears that Iran may close the vital Strait of Hormuz.
- The Strait of Hormuz is the world’s most important oil transit chokepoint about 20% of global oil passes through it.
- Closure would cause global oil prices to surge, hitting major importers like India the hardest.
- The strait is only 33–34 km wide at its narrowest, making it vulnerable to blockades or attacks.
- Major oil producers (Saudi Arabia, Iran, Iraq, Kuwait, UAE, Qatar) depend on this route for exports.
- The strait has never been closed before, but even the threat disrupts oil markets and global trade.
New Delhi: As the conflict between Iran and Israel escalates, global attention is turning to the Strait of Hormuz a narrow waterway with outsized importance for the world’s energy supply. Reports suggest that Iran may consider closing the strait in response to ongoing hostilities, a move that could trigger a worldwide oil crisis.
Why the Strait of Hormuz Is So Critical
The Strait of Hormuz is the only sea passage connecting the oil-rich Persian Gulf to the open ocean via the Gulf of Oman and the Arabian Sea. On its northern shore lies Iran, while Oman and the United Arab Emirates border the south.
- Vital Oil Chokepoint:
Roughly 20% of the world’s oil about 21 million barrels per day flows through this narrow channel. This includes exports from Saudi Arabia, Iran, Iraq, Kuwait, the UAE, and Qatar. - Narrow and Vulnerable:
At its tightest point, the strait is just 33–34 km (21 miles) wide, but the actual shipping lanes are only a few kilometers across, making them highly susceptible to disruption or blockade. - Never Closed, But Always a Risk:
While the Strait of Hormuz has never been fully closed, tensions in the region frequently cause oil prices to spike on fears of potential disruption.
What Happens If Iran Blocks the Strait?
A closure or even a partial disruption would have immediate and dramatic effects:
- Global Oil Prices Would Skyrocket:
The sudden loss of such a large portion of the world’s oil supply would send prices soaring, potentially triggering economic shocks worldwide. - India and Other Importers Hit Hard:
India, which imports the majority of its crude oil from the Gulf, would face sharp increases in fuel costs, affecting everything from transportation to manufacturing. - Ripple Effects Across the Globe:
Energy-dependent economies in Asia, Europe, and beyond would feel the impact, with inflation and supply chain disruptions likely to follow.
Why Is the Strait So Hard to Bypass?
There are no alternative routes with the capacity to replace the volume of oil that passes through Hormuz. Pipelines exist but can only handle a fraction of the total flow, making the strait a true bottleneck for global energy markets.
The Strait of Hormuz remains the world’s most crucial oil artery. As Iran-Israel tensions mount, even the threat of closure is enough to unsettle global markets and raise the specter of an oil crisis especially for major importers like India. The world is watching closely, hoping this vital waterway remains open.
