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The Strait of Hormuz: What It Is, Where It Is, and Why It Matters

Of all the vast oceans and seas that cover our planet, no single waterway holds more influence over the global economy than a narrow, 21-mile-wide channel of water separating Iran from the Arabian Peninsula.

Every day, a silent, steady procession of the world’s largest supertankers navigates this passage, a liquid pipeline carrying a fifth of the entire world’s oil supply.

This is the Strait of Hormuz, the world’s most important energy chokepoint and its most dangerous flashpoint.

While it may seem like a distant geographical feature, the events in this strait have a direct impact on the price of gasoline at the pump, the cost of goods on store shelves, and the stability of the global financial system.

It is a place where trillion-dollar economics, international law, and the threat of military conflict converge in a volatile, high-stakes ballet. And in today, it’s back in the news.

With tensions between Israel and Iran, and now the U.S., reaching a boiling point, Iran is once again threatening to shut down the Strait, which could send shockwaves through global markets.

Read on to discover what the Strait of Hormuz is, why it matters, and learn a bit about its history.

What is the Strait of Hormuz?

The Strait of Hormuz is a narrow sea channel that links the Persian Gulf in the west with the Gulf of Oman and the Arabian Sea in the southeast. It represents the only maritime outlet for some of the world’s largest oil and gas producers. The name “Hormuz” is believed to be derived from the ancient port city of Hormuz, which was a center of commerce in the region for centuries.

The strait’s geography is a key factor in its strategic nature. It is bordered by Iran to the north and by Oman’s Musandam Peninsula and the United Arab Emirates to the south. The Musandam Peninsula creates a jagged, fjord-like coastline on the southern edge, further constraining the navigable waters.

Where is the Strait of Hormuz on a Map?

On a map, the strait appears as a distinct bottleneck. At its narrowest point, it is just 21 miles (33 kilometers) wide. However, the width of the navigable shipping lanes for large tankers is even more restricted.

The established Traffic Separation Scheme (TSS), a maritime route management system mandated by the International Maritime Organization, dictates that ships use two-mile-wide lanes, one for inbound and one for outbound traffic.

These lanes are separated by a two-mile-wide buffer zone. Crucially, these designated shipping channels lie entirely within the territorial waters of Iran and Oman, a fact that underpins the region’s complex security dynamics.

Strait of Hormuz

Why is the Strait of Hormuz so Important?

The importance of the Strait of Hormuz is difficult to overstate; it is the world’s foremost energy chokepoint. The term “chokepoint” refers to a narrow channel along widely used global sea routes that is critical to energy security. The temporary or indefinite blockage of such a route can lead to substantial disruptions in global energy supplies and a sharp increase in energy costs.

A staggering volume of the world’s energy supply traverses this waterway. Major OPEC members, including Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates, rely on the strait to ship their crude oil and petroleum products to global markets. Qatar, one of the world’s largest exporters of liquefied natural gas (LNG), sends the vast majority of its LNG shipments through the strait.

The primary destinations for these energy exports are the rapidly growing economies of Asia, including China, Japan, India, and South Korea. Consequently, any instability in the Strait of Hormuz sends immediate shockwaves not just through global oil markets, but directly to the industrial and economic heartlands of Asia and beyond.

The lack of viable, large-scale alternatives for bypassing the strait solidifies its importance. Existing pipelines, such as the East-West Pipeline in Saudi Arabia or the Abu Dhabi Crude Oil Pipeline, can only accommodate a fraction of the total oil flow. Building new pipelines is a costly and politically complex endeavor that cannot quickly replace the sheer volume capacity of sea-based tanker transport.

Who Controls the Straight of Hormuz?

Control over the Strait of Hormuz is a layered and contentious issue, involving international law, military power, and regional politics.

Legally, the passage is governed by the United Nations Convention on the Law of the Sea (UNCLOS). UNCLOS establishes the right of “transit passage,” which allows vessels, including military warships, to pass through international straits like Hormuz without obstruction, so long as their passage is continuous and expeditious. While the United States has not ratified the treaty, it recognizes this right as a matter of customary international law. Iran, a signatory but not a ratifier of the treaty, has periodically challenged this right, arguing that it should have more control over foreign military vessels transiting the strait.

Militarily, Iran is the dominant power along the northern coast. Its naval forces are split into two entities: the regular Artesh Navy and the more ideologically driven Islamic Revolutionary Guard Corps Navy (IRGCN). The IRGCN is the primary force within the strait and employs a strategy of asymmetric warfare. This involves using a large fleet of small, fast, and heavily armed speedboats, anti-ship missiles, naval mines, and drones to counter the naval superiority of larger powers like the United States. Iran also controls several strategic islands overlooking the shipping lanes, including Abu Musa and the Greater and Lesser Tunbs, which serve as platforms for surveillance and weapons systems.

Oman, which controls the southern coast, plays a more diplomatic and neutral role. It maintains good relations with both Iran and Western nations and often acts as an interlocutor to de-escalate tensions.

In response to Iranian threats and actions, the United States maintains a robust naval presence in the region, centered on its Fifth Fleet, headquartered in Bahrain. Furthermore, international coalitions have been formed to protect shipping. The International Maritime Security Construct (IMSC), a U.S.-led initiative, was established in 2019 to deter attacks on commercial vessels and ensure freedom of navigation.

How Much Oil and Gas Goes through the Strait Each Day?

The daily flow of energy through the Strait of Hormuz is immense and has remained consistently high for decades.

According to the U.S. Energy Information Administration (EIA), a daily average of approximately 21 million barrels of crude oil, condensate, and petroleum products transited the strait in recent years. This figure represents roughly 30% of total global seaborne-traded oil and about 20% of total global petroleum liquids consumption.

In addition to oil, the strait is a vital conduit for liquefied natural gas (LNG). About 4 trillion cubic feet of LNG, primarily from Qatar and the UAE, passes through the strait annually. This accounts for more than a quarter of the world’s total LNG trade, making the strait as critical for natural gas as it is for oil.

Strait of Hormuz Alternatives

The immense strategic risk associated with a single point of failure for a fifth of the world’s energy supply has led Gulf nations to develop and propose a limited number of bypass routes. These alternatives, primarily overland pipelines, offer some mitigation but cannot fully replace the volume and flexibility of tanker traffic through the strait.

East-West Pipeline (Petroline)

The most significant alternative is Saudi Arabia’s East-West Pipeline

, also known as the Petroline. This 1,200-kilometer pipeline runs from the Abqaiq oil fields in the country’s Eastern Province to the Red Sea port of Yanbu. This allows Saudi Arabia to export its crude directly from the Red Sea, completely bypassing the Strait of Hormuz and the Bab el-Mandeb strait. The pipeline has a nameplate capacity of 5 million barrels per day, though its operational capacity can fluctuate. While a crucial strategic asset for Saudi Arabia, it does not offer a solution for other Gulf producers like Kuwait, Qatar, Iraq, or Iran.

East-West Crude Oil Pipeline (left) with the UAE's Habshan–Fujairah oil pipeline

Abu Dhabi Crude Oil Pipeline (ADCOP)

The United Arab Emirates operates the Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan–Fujairah pipeline. This 360-kilometer pipeline runs from the Habshan onshore oil fields in Abu Dhabi to the port of Fujairah on the Gulf of Oman, located south of the strait. With a capacity of about 1.5 million barrels per day, ADCOP allows the UAE to export a significant portion of its oil production directly to the open ocean. Fujairah has also been developed into a major global oil trading and storage hub, enhancing its strategic value.

Habshan–Fujairah pipeline (right) with Saudi Arabia's East-West Crude Oil Pipeline (left)

(Wikipedia)

Iraq Pipeline to Ceyhan (Turkish Pipeline)

Iraq has historically relied on the Iraq-Turkey Pipeline, which runs from the northern Kirkuk oil fields to the port of Ceyhan on the Mediterranean coast. However, this route has been plagued by persistent disruptions due to political disputes, security issues, and technical problems. Exports through this pipeline have been halted since March 2023 following an arbitration ruling, and its future remains uncertain, making it an unreliable alternative for Iraqi exports.

Location of Kirkuk–Ceyhan Oil Pipeline

(Wikipedia)

Other Proposed and Past Alternatives

Iran has also developed a pipeline, the Goreh-Jask pipeline, to transport oil to a terminal on the Gulf of Oman, thereby bypassing the strait. However, its operational capacity remains limited compared to the massive volumes exported from its main terminals inside the Persian Gulf. Other more ambitious overland routes have been proposed over the years but have been stymied by immense cost and geopolitical complexity. Together, the existing bypass pipelines can only handle a fraction, roughly a third, of the oil that typically passes through Hormuz.

A Timeline of Major Incidents in the Straight of Hormuz

The strait’s strategic value has inevitably made it a flashpoint for military conflict and international crises.

Operation Praying Mantis (1988)

During the latter stages of the 1980-1988 Iran-Iraq War, a phase known as the “Tanker War” saw both nations attacking each other’s oil shipping. After the U.S. Navy frigate USS Samuel B. Roberts was severely damaged by an Iranian mine in April 1988, the U.S. launched a powerful retaliatory strike. On April 18, 1988, U.S. naval forces executed Operation Praying Mantis. In a single day of coordinated surface and air attacks, the U.S. Navy destroyed two Iranian oil platforms used for military surveillance and sank or severely damaged half of Iran’s operational navy, including a frigate and several speedboats. It was the largest U.S. surface naval battle since World War II and a decisive demonstration of American military power.

Downing of Iran Air Flight 655 (1988)

Just a few months later, on July 3, 1988, one of the most tragic incidents in the region’s history occurred. The U.S. Navy cruiser USS Vincennes, equipped with the advanced Aegis combat system, was engaged in skirmishes with Iranian gunboats in the strait. In a tense and chaotic environment, the Vincennes’ crew misidentified Iran Air Flight 655, a civilian Airbus A300 on a routine flight from Bandar Abbas to Dubai, as an attacking F-14 Tomcat fighter jet. The cruiser fired two surface-to-air missiles, destroying the aircraft and killing all 290 passengers and crew on board. The U.S. expressed deep regret and described the event as a tragic accident of war, eventually paying compensation to the victims’ families. Iran condemned the downing as a barbaric act and an international crime.

U.S.-Iran Naval Standoffs (2008, 2011-2012)

Tensions have flared repeatedly in the 21st century. In January 2008, five IRGCN speedboats aggressively approached a convoy of three U.S. Navy vessels, making threatening radio transmissions. The situation de-escalated without any shots fired.

A more prolonged standoff occurred in late 2011 and early 2012 amid escalating international pressure over Iran’s nuclear program. As the U.S. and European Union imposed crippling sanctions on Iran’s oil exports and banking sector, Iranian officials repeatedly threatened to close the Strait of Hormuz entirely. The rhetoric was met with a significant buildup of U.S. and allied naval forces in the Gulf, creating a period of heightened military alert.

Seizures and Attacks on Commercial Tankers (2019-2024)

The period beginning in 2019 saw a significant resurgence of tit-for-tat incidents. In May and June 2019, mysterious attacks using limpet mines damaged several international oil tankers in the Gulf of Oman. The U.S. and its allies blamed Iran, which denied involvement. In July 2019, after an Iranian supertanker was seized by British forces off Gibraltar on suspicion of carrying oil to Syria in violation of EU sanctions, Iran’s IRGCN seized the British-flagged tanker Stena Impero in the Strait of Hormuz, holding it for two months. This pattern has continued, with Iran seizing tankers in what appears to be retaliation for the U.S. or its partners confiscating ships carrying sanctioned Iranian oil. Notable seizures have included the Greek-managed Advantage Sweet in 2023 and the Marshall Islands-flagged St Nikolas in 2024, which was carrying Iraqi oil but was seized in connection with a long-running dispute with the United States.

June 2025: Renewed Threats and Escalating Tensions

June 2025: Escalating Tensions and Global Market Jitters

In June 2025, the Strait of Hormuz once again became a focal point of global concern as geopolitical tensions in the Middle East intensified. On June 13, Israel launched targeted airstrikes on Iranian nuclear and uranium enrichment facilities.. In response, Iran issued sharp warnings, with Esmail Kowsari, a senior Iranian parliament member and Islamic Revolutionary Guard Corps (IRGC) commander, declaring on June 15 that closing the Strait of Hormuz was “under active consideration” as a means to safeguard national sovereignty. This marked one of the most direct threats to the strait’s security since the 2011–2012 standoffs over Iran’s nuclear program.

The Iranian parliament escalated the rhetoric on June 22 following U.S. airstrikes on critical nuclear facilities, passing a non-binding resolution that urged the closure of the Strait to disrupt global energy flows. While the vote carried significant symbolic weight, the final decision rests with Iran’s Supreme National Security Council, which has yet to act. Analysts, including those from the Atlantic Council, emphasize that a full closure remains unlikely due to Iran’s heavy reliance on the strait for its own oil exports, which account for nearly 2 million barrels per day, primarily to China. A blockade would cripple Iran’s economy, risking domestic unrest and straining ties with Beijing, which imports 1.8–5.4 million barrels daily through the strait.

Global oil markets reacted swiftly to the threats. Brent crude futures surged approximately 10% in mid-June, with prices hovering near $85 per barrel. Analysts from JP Morgan and Rabobank warned that a prolonged disruption could push prices to $100–$130 per barrel, fueling inflation and threatening global economic stability. The vulnerability of Gulf exporters—Saudi Arabia, Kuwait, Iraq, and the UAE, alongside Iran—was underscored, as their oil shipments depend entirely on this narrow passage. Adding to the unease, a mid-June collision between two oil tankers in the strait, attributed to navigational errors rather than sabotage, highlighted the waterway’s congestion and risks, especially amid reports of increased electronic signal interference in the region.

Behind the scenes, diplomatic efforts intensified to avert a crisis. U.S. officials, including Senator Marco Rubio, publicly urged China to leverage its economic influence over Iran to prevent any closure, noting Beijing’s dependence on the strait for over half its oil imports. China’s foreign ministry issued cautious statements calling for “restraint by all parties,” while reportedly engaging in quiet diplomacy with Tehran. Oman, maintaining its longstanding neutrality, offered to mediate between Iran and Western powers, as it has done in past crises.

The June 2025 developments underscore the Strait of Hormuz’s enduring role as a geopolitical flashpoint. While Iran’s threats have rattled markets, the economic self-harm of a closure and international pressure, particularly from China, make a blockade improbable for now. Nonetheless, the episode serves as a stark reminder of the strait’s critical importance to global energy security and the fragile balance of power in the region.

Strait of Hormuz FAQs

Which country controls the Strait of Hormuz?

No single country controls the Strait of Hormuz. The navigable shipping lanes pass through the territorial waters of both Iran and Oman. While international law guarantees the right of transit passage, Iran’s significant military presence along the northern coast and its control of strategic islands give it a powerful and influential position over the waterway.

Why is the Strait of Hormuz important?

The Strait of Hormuz is critically important because it is the world’s most vital energy chokepoint. Approximately one-fifth of the world’s daily oil consumption and over a quarter of its liquefied natural gas must pass through this narrow channel. Any disruption could severely impact global energy supplies and prices, with far-reaching consequences for the international economy.

How many ships go through the Strait of Hormuz?

An average of 90 to 100 vessels, the vast majority of which are large crude oil carriers and LNG tankers, transit the Strait of Hormuz every day. This equates to tens of thousands of vessel movements annually, underscoring the immense logistical challenge and strategic importance of maintaining security and freedom of navigation in this narrow and congested waterway.

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