The Strait of Hormuz is a crucial maritime route located between Oman and Iran, serving as a vital link between the Persian Gulf and the Gulf of Oman. According to the US Energy Information Administration (EIA), it is regarded as the world’s most significant oil transit chokepoint. At its narrowest point, the strait measures just 33 kilometers (21 miles) wide, creating a congested and risky space for shipping. This is particularly important given that approximately 20 million barrels of crude and other fuels flow through the strait daily, benefiting global consumers and countries like Qatar, which relies heavily on this corridor for liquefied natural gas exports.
The ongoing conflict between Israel and Iran has intensified concerns about the security of this vital waterway. Historically, Iran has threatened to close the Strait of Hormuz in response to external pressure, and while there have been no significant attacks on commercial shipping amid the current hostilities, shipowners are becoming increasingly cautious. Reports indicate a rise in electronic interference with vessel navigation systems, further complicating safe passage through the region. The uncertainty surrounding the conflict has left oil markets on edge, as any disruption to oil flows could lead to soaring crude prices, particularly impacting Asian energy importers.
Countries such as China, India, Japan, and South Korea, which account for a large percentage of oil transported through the strait, would be most affected by supply disruptions. Conversely, if Iran were to take actions that could inhibit traffic, it might provoke a military response from the United States, as the US Fifth Fleet is stationed nearby to safeguard commercial shipping. In anticipation of potential disruptions, Gulf Arab states have been exploring alternative routes for transporting oil. Saudi Arabia and the UAE, for example, have invested in infrastructure that allows them to bypass the Strait of Hormuz if necessary, enabling them to access other markets while minimizing risk.