What is the Strait of Hormuz and why is it important

What is the Strait of Hormuz and why are we hearing so much about it right now?

The Strait of Hormuz is a narrow channel connecting the Persian Gulf and the Gulf of Oman. It’s the only access ships in the Persian Gulf have to the Indian Ocean and the rest of the shipping world.

At its most narrow point, the strait is only 24 miles wide and sandwiched between Iran and Oman. Vessels going in or out are confined to two, two-mile-wide shipping lanes separated by just two miles themselves.

One-fifth of the world’s oil and liquefied natural gas (or LNG) shipments pass through the strait every year. And many countries rely on the crude that comes out of the Strait of Hormuz. China, for example, is the biggest consumer of Iranian oil relying on deliveries from the strait for 45% of its annual consumption.

After the U.S. and Israel launched their joint attack on Iran in February, Iran launched a series of drone attacks and missile threats to effectively close the Strait of Hormuz to most traffic.

Iran’s blockade has caused oil prices to soar from $65 a barrel to well above $100, and markets around the world are in crisis.

And with the strait effectively blocked, hundreds of ships are essentially stuck waiting on either side. Coupled with the destruction of oil and gas infrastructure across the region, energy production in the Middle East is grinding to a halt, sending ripple effects through the world.

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