Why the Strait of Hormuz matters so much in the Iran war
Why the Strait of Hormuz Matters in the Iran Conflict
A temporary truce between Iran and the United States hinges on ensuring unimpeded access through the Strait of Hormuz. The waterway, a critical artery for global energy, had been effectively shut down by Iran after the US and Israel launched an attack on the country on 28 February. This strategic chokepoint handles roughly 20% of the world’s oil and liquefied natural gas (LNG), and its closure triggered a spike in fuel prices. Following the ceasefire announcement, oil prices dropped by approximately 15%.
The Geographical Significance of the Strait
Located between Iran to the north and Oman, alongside the United Arab Emirates (UAE), the strait spans about 50km at its entry and exit points, narrowing to 33km at its most constricted section. This narrow passage links the Persian Gulf to the Arabian Sea, allowing passage for the largest crude oil tankers. Major Middle Eastern producers, such as Iraq, Kuwait, Saudi Arabia, and the UAE, rely on it for exporting their energy resources. Additionally, Qatar and the UAE are key LNG suppliers through this route.
Trade Volumes and Economic Impact
Estimates from the US Energy Information Administration (EIA) indicate that around 20 million barrels of oil and refined products traverse the strait daily in 2025, translating to nearly $600bn in annual energy trade. About a third of global LNG shipments also pass through, with Qatar exporting approximately 9.3 billion cubic feet per day and the UAE contributing 0.7 billion cubic feet. LNG, a gas condensed into liquid form, occupies 600 times less space during transit, enabling efficient transport to be converted back into gas for use in heating, cooking, and power generation.
At its narrowest point, the strait lies entirely within the territorial waters of Iran and Oman, extending up to 12 nautical miles from their coasts. During hostilities, Iranian forces employed drones, missiles, fast attack boats, and potential mines to disrupt maritime traffic. As of 2 April, non-profit group United Against Nuclear Iran reported at least 24 commercial vessels had been targeted, with three near misses.
Global Consequences of the Blockade
Disruptions in the strait affected not only Gulf nations but also Asia, where China is estimated to absorb about 90% of Iran’s global oil exports. The fuel shortage has led to measures such as remote work mandates, shortened workweeks, and early university closures to reduce consumption. In Africa, South Sudan and Mauritius introduced electricity rationing, while Europe saw Slovenia become the first EU state to enforce fuel restrictions.
US Military Response and Historical Precedents
Despite the crisis, the US has not deployed warships to the strait, focusing instead on aerial strikes against Iranian military targets. On 18 March, the US military bombed anti-ship missile sites near the strait to secure shipping lanes. Former President Trump had previously urged allies and China to bolster Hormuz security with naval presence, but his call received limited support. He later argued the US could manage the situation independently.
In the late 1980s, during the Iran-Iraq war, attacks on oil facilities escalated into a “tanker war,” with both nations targeting neutral vessels to pressure economies. Kuwaiti tankers carrying Iraqi oil were particularly vulnerable. The current situation echoes similar vulnerabilities, as the strait remains a vital link for imports, including food, medicine, and technology, to the Middle East.
“You can be attacked, and you can’t get insurance or it is extremely expensive,” said Arne Lohmann Rasmussen, chief analyst at Global Risk Management, during the instability.
