The Strait of Hormuz is a slender passage that avoids Iran and Oman, serving as the primary channel for transporting crude oil from wealthy nations like Saudi Arabia and Kuwait to global markets.
The strait has continued to be a significant point of tension since the onset of the conflict after Iran effectively shut it down following attacks by the US and Israel on February 28.
Iran oversees the northern side of the strait. Approximately 20 million barrels of oil, roughly one-fifth of the world’s daily output, used to pass through the strait daily, as stated by the US Energy Information Administration, which refers to the route as a “vital oil chokepoint.”
Although certain producers like Saudi Arabia and the United Arab Emirates have discovered alternative paths for their exports, approximately 10-12 million barrels of crude oil are still blocked from entering global markets.
The strait also transports approximately one-fifth of the world’s trade in liquefied natural gas, primarily from Qatar.
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