Why the Strait of Hormuz matters so much in the Iran war
Why the Strait of Hormuz Matters So Much in the Iran War
A temporary truce between Iran and the United States hinges on ensuring uninterrupted transit through the Strait of Hormuz. This narrow passage, a critical artery for global energy supply, had been effectively closed by Tehran following attacks by the US and Israel on 28 February. The strait, which links the Gulf to the Arabian Sea, carries approximately 20% of the world’s oil and liquefied natural gas (LNG) annually, making it a linchpin in international energy trade.
When hostilities disrupted shipping, fuel prices surged globally. However, the agreement to halt conflict led to a 15% drop in oil prices within days. The strait’s dimensions—narrowing to 50 km at its entry and exit, and 33 km at its deepest point—amplify its strategic vulnerability. It accommodates the largest crude oil tankers and is traversed by Middle Eastern producers and consumers alike.
Economic Significance of the Waterway
Estimates from the US Energy Information Administration (EIA) indicate that 20 million barrels of oil and oil products pass through Hormuz daily, representing nearly $600 billion in annual trade. This flow includes not only Iranian exports but also shipments from Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE. Qatar dominates LNG exports, sending about 9.3 billion cubic feet per day, while the UAE contributes 0.7 billion cubic feet. LNG, compressed to reduce its volume by 600 times, is essential for energy consumption across industries.
Disruptions in the strait have ripple effects beyond energy. One-third of the world’s fertilizer trade transits this route, and it also facilitates imports of food, medicine, and technology to the Middle East. During recent tensions, ship traffic dropped sharply, with Iran warning of attacks on commercial vessels. The UN allows territorial control up to 12 nautical miles from coasts, meaning the strait’s most vulnerable section lies entirely within Iran and Oman’s waters.
Military Actions and Historical Context
Iran’s military threats—drones, missiles, and fast attack boats—posed a significant risk to maritime traffic. As of 2 April, at least 24 ships had been targeted, including three near misses, according to United Against Nuclear Iran. Arne Lohmann Rasmussen, a Global Risk Management analyst, noted: “You can be attacked, and you can’t get insurance or it is extremely expensive.”
The US has historically intervened to safeguard Hormuz. During the 1980s Iran-Iraq war, strikes on oil facilities escalated into a “tanker war,” where both nations targeted neutral ships. Now, the US relies on air strikes, such as bombing Iranian anti-ship missile sites on 18 March, rather than deploying warships. President Trump previously urged allies and China to secure the strait with naval support, but his appeal garnered limited response.
Despite the ceasefire, the strait remains a flashpoint. Its closure could cripple energy markets, impacting daily life in Asia, where China alone absorbs 90% of Iranian oil exports. Governments in the region have imposed measures like remote work and school closures to manage fuel shortages. In Africa, South Sudan and Mauritius restricted electricity use, while Slovenia in Europe pioneered fuel rationing.
