Iran's strait of hormuz shutdown sparks global oil crisis
Tehran has vowed to close the Strait of Hormuz and threatened to unleash further disruptions if the US and Israel continue their attacks, sending shockwaves through global markets. The waterway, a critical artery for oil and liquefied natural gas (LNG) transport, has seen maritime traffic plummet since the recent conflict. The International Energy Agency has warned that the current oil supply disruption represents the largest in history, triggering volatile price swings.
The strait of hormuz: a chokepoint under pressure
The strait, a narrow passage connecting the Persian Gulf to the Indian Ocean, handles roughly 16.7 million barrels of crude and condensate daily, according to Bloomberg data from 2025. Saudi Arabia, Iraq, Kuwait, the United Arab Emirates, and Iran all rely on the strait for exports, with most shipments destined for Asia. Nearly a fifth of the world's LNG supply, primarily from Qatar, also transits through this vital channel. Its strategic importance is underscored by its geography: with Iran to the north and the UAE and Oman to the south, the strait's narrowest point is just 34 kilometers wide.
The vulnerability of shipping is heightened by the shallow waters, making vessels susceptible to mines, and the proximity to Iranian land, increasing the risk of missile attacks or interception by patrol boats. While international law grants nations sovereignty within 12 nautical miles of their coast, Iran has never fully ratified the United Nations Convention on the Law of the Sea, potentially allowing for a naval blockade. Even without deploying warships, Iran could severely disrupt shipping through coastal patrols and drone strikes.
The implications are already being felt. Saudi Arabia, the largest oil exporter through the strait, has alternative routes via the 1,200-kilometer East-West Pipeline to the Red Sea, capable of transporting 5 million barrels a day. The UAE also has the Habshan-Fujairah pipeline, with a capacity of 1.5 million barrels daily. Iraq relies almost entirely on the strait, while Kuwait, Qatar, and Bahrain have no other options.
Historically, the Strait of Hormuz has been a flashpoint. During the 1980-1988 Iran-Iraq War, the