Why is Strait of Hormuz important? Oil route in focus amid US-Israel strikes on Iran

As joint US-Israel strikes on Iran escalate tensions in the Middle East, global focus has shifted to the Strait of Hormuz — a narrow but critical waterway that carries a significant share of the world’s energy supplies.

The Strait of Hormuz connects the oil-rich Persian Gulf to the Indian Ocean and sits between Iran and Oman’s Musandam exclave. At just around 50 kilometres (30 miles) wide and no deeper than 60 metres (200 feet) in places, the strait is geographically vulnerable to military disruption.

Several strategically important islands dot the waterway, including Iran’s Hormuz, Qeshm and Larak. Also located there are the disputed Greater Tunb, Lesser Tunb and Abu Musa islands, under Iranian control since 1971, offering Tehran a commanding position over passing ships.

World’s energy chokepoint

The Strait of Hormuz is a strategically vital waterway dotted with key islands, including Iran’s Hormuz, Qeshm and Larak, as well as the disputed Greater Tunb, Lesser Tunb and Abu Musa islands under Iranian control since 1971.

Described by the US Energy Information Administration (EIA) as one of the world’s most important oil chokepoints, the strait handles about 20 million barrels of oil per day — roughly one-fifth of global consumption — and around one-fifth of global LNG trade, mainly from Qatar.

Over 80% of shipments through the strait go to Asian markets, with China buying more than 90% of Iran’s oil exports. While Saudi Arabia and the UAE have limited bypass routes, their combined alternative capacity of about 2.6 million barrels per day is far below total flows through Hormuz.

Tehran keeps Hormuz card in escalating crisis

Iran has long used the Strait of Hormuz as a geopolitical pressure point, repeatedly threatening to close it during crises. A senior commander of Iran’s Revolutionary Guards warned again in January that Tehran could shut the waterway if attacked.

Despite frequent threats, Iran has never fully blocked the strait. However, it has briefly restricted access during military drills and has been involved in ship seizures and harassment incidents in recent years.

Naval operations in the area are controlled by the Islamic Revolutionary Guard Corps (IRGC), which oversees Iran’s asymmetric maritime capabilities.

Strait of Hormuz incidents

The Strait of Hormuz has long been a hotspot for geopolitical tensions and maritime confrontations.

1973: Arab oil producers imposed an embargo on Western supporters of Israel, underscoring the strategic importance of Gulf energy routes.

1980–1988 “Tanker War”: During the Iran–Iraq War, both sides targeted oil tankers; over 500 vessels were damaged or destroyed.

1988: The USS Samuel B. Roberts struck an Iranian mine, and later that year a US warship shot down an aircraft, killing 290 people.

2012: Iran threatened to block the strait in response to US and European sanctions.

Post-2018: Tensions rose after the US withdrew from the Iran nuclear deal and reimposed sanctions.

2019: Multiple vessels were targeted near the UAE coast, heightening fears of US-Iran escalation.

2021: A tanker linked to an Israeli-owned company was attacked in the Gulf of Oman.

2023–2024: Iran seized several vessels near or in the strait, including the MSC Aries in April 2024.

Why it matters now

With US-Israel strikes targeting Iran and Tehran warning of retaliation, the possibility of disruption in the Strait of Hormuz has revived fears of global energy shocks.

Any closure or significant interference could send oil and gas prices soaring, strain global supply chains and hit energy-importing economies — particularly in Asia — the hardest.

In times of heightened military conflict, the Strait of Hormuz remains not just a regional flashpoint but a linchpin of global energy security.

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