Overview
Every day, roughly 21 million barrels of petroleum pass through the Strait of Hormuz - 20% of global consumption and a quarter of all seaborne oil. Flowing between Iran, Oman, and the UAE, this narrow waterway connects the Persian Gulf to the Arabian Sea and underpins the energy security of nations worldwide.
But that dependence cuts both ways. Renewed geopolitical tensions - especially the Iran-US conflict - have revived fears of a closure. Military confrontations, sanctions, and Iranian threats have made disruption a real possibility, and any interruption would send shockwaves through energy markets, driving prices sharply higher.
Continue reading to understand the strategic stakes, the risks facing the Strait, and the market consequences of a potential shutdown.
