Where is the Strait of Hormuz and why is it so important?

The Strait of Hormuz has dominated global headlines for several days. On Sunday, Iran threatened to close it in retaliation for U.S. attacks on its nuclear facilities. As the only maritime passage between the Persian Gulf and the Gulf of Oman, it plays a crucial role in oil transportation. Unsurprisingly, the price of a barrel of oil has already surged.

A strategic maritime corridor

On the world map, the Strait of Hormuz is a narrow chokepoint between the Musandam Peninsula –belonging to the United Arab Emirates and Oman – and the southern coast of Iran. At its narrowest point, it measures 39 km wide, at its widest 97 km, and has a total length of 167 km. Despite its relatively small size, its strategic importance is immense.

To the east lies the Persian Gulf, a global oil hub that has frequently been the stage for international conflicts. To the west, through the Gulf of Oman, one can reach the Arabian Sea and then the Indian Ocean. In short, the Strait of Hormuz is the only maritime route from Kuwait, Qatar, Bahrain, and Iraq –making it a vital artery for massive maritime trade.

Oil flows through here

According to CNN, tankers transport approximately 20 million barrels of oil through the Strait of Hormuz every day – equivalent to 20% of global oil consumption. Most of this export goes to Asian countries, and any disruptions would have catastrophic effects on their economies. About 20% of the world’s natural gas supply also passes through the strait, most of it originating from Qatar. Analysts believe the ripple effects in the form of significant energy price hikes would be felt worldwide.

The Strait of Hormuz as a military target

Closing the Strait of Hormuz would not only limit oil exports from the Persian Gulf but also directly impact U.S. interests. Around 40,000 American troops and several mine-hunting vessels are stationed in the region. According to The New York Times, the U.S. Navy is already planning to disperse its ships to minimize potential losses in the event of attacks.

An open conflict between Israel and Iran has been ongoing for over a week, but so far, the Iranian navy –equipped with a significant amount of explosives – has not been weakened.

Karim Sadjadpour, an analyst at the Carnegie Endowment for International Peace, suggested that Iran could inflict massive damage if it decides to mine the Strait of Hormuz and destroy regional oil refining facilities. However, he added, Iran would likely not survive the retaliation.

Will the strait be closed?

On Sunday, the Iranian parliament voted in favor of closing the Strait of Hormuz. The final decision, however, lies with the Supreme National Security Council and Supreme Leader Ali Khamenei. Even the threat alone has shaken fuel markets, and carrying it out could trigger global chaos.

Energy and maritime risk expert Noam Raydan from the Washington Institute believes that these threats are unlikely to be carried out. Iran itself gains substantial revenue from oil exports through the strait, and closing it would be economic suicide – also harming the interests of China, its strategic partner.

The American newspaper The Time recalls that Iran made similar threats in 2011 in response to Western sanctions but never acted on them. Nonetheless, the eyes of the world remain fixed on the Strait of Hormuz, which could determine whether the Middle East conflict escalates further.

main photo: European Space Agency/Wikimedia