Strait of Hormuz: Why it is the the world’s most important oil chokepoint?
Iran's parliament's to close the Strait of Hormuz has triggered global concern. The chokepoint handles 20 per cent of oil and 30 per cent of LNG. The disruption pushed prices to $130, delayed shipments, and sparked a global energy and security crisis with no real alternatives available.
Strait of Hormuz
In June 2025, Iran’s parliament approved a plan to close the Strait of Hormuz after US strikes on its nuclear sites. This narrow waterway is now at the centre of global oil and energy concerns.
Massive Oil and Gas Flow
The Strait of Hormuz carries about 20 million barrels of oil per day, about 20 to 25 per cent of the world’s supply. It also handles 30 per cent of global liquefied natural gas, mainly from Qatar. No other sea route matches this volume.
Geography and Vulnerability
At its narrowest, the Strait is only 33 kilometres wide, with just 3-kilometre-wide shipping lanes. Its location between Iran and Oman makes it easy to disrupt, as seen with Iran’s recent threats after the US attack on Nuclear sites.
Dependence of Major Economies
China, India, Japan, and South Korea together import more than two-thirds of the oil passing through the Strait. Gulf countries like Saudi Arabia, Iraq, UAE, and Kuwait depend on it for most of their exports.
Pipelines as Alternatives
Pipelines in Saudi Arabia and the UAE can move only a small part of the oil. There is no other route that can handle the 20 million barrels per day that pass through the Strait, making it irreplaceable for global trade.
Economic and Market Risks
A closure could push oil prices to $120–$130 per barrel. Shipping would be delayed, and energy costs would rise worldwide. Even a short disruption could backlog 140 million barrels.
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