Strait Of Hormuz Global Oil Lifeline, what to know

Strait Of Hormuz Global Oil Lifeline, what to know

The Strait of Hormuz — the narrow gateway through which roughly a fifth of the world’s oil flows — has ground to a halt as the widening Iran conflict sends shockwaves through global energy markets.

Oil prices have surged above $75 a barrel, with analysts warning that a prolonged shutdown could send crude “well into triple digits” and reignite a European gas crisis.

Why This Waterway Matters

Just 33 kilometres wide at its narrowest point, the strait links the Persian Gulf to the Gulf of Oman and beyond. Tankers carrying oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran must pass through it to reach global markets — primarily in Asia.

According to the U.S. Energy Information Administration, most of the energy volumes that transit the strait have no viable alternative export route.

Even brief disruptions can rattle markets. A full closure lasting weeks could trigger a global energy shock.

Is It Actually Closed?

Iranian officials have declared the strait “closed,” threatening to set ablaze any vessel attempting passage. Tehran has previously harassed shipping in the corridor and laid naval mines during the 1980s Iran-Iraq war, but outright closure threats have been rare in recent decades.

In mid-February, Iran temporarily restricted parts of the waterway during military drills, pushing oil prices up 6% in days.

Now, with tankers under threat, global shipping has stalled.

Trump’s Escort Plan

President Donald Trump has ordered the US development finance arm to provide political risk insurance for ships willing to transit the Gulf and said the US Navy will escort tankers if necessary.

The Navy currently has multiple destroyers and littoral combat ships in the region, previously used to guard merchant vessels in both the Gulf and Red Sea.

Shipping Paralysed

Major carriers including Maersk, Hapag-Lloyd, CMA CGM and MSC have suspended crossings.

An estimated 3,200 ships are now idle inside the Persian Gulf, with hundreds more waiting outside.

If traffic does not resume soon, the world’s most critical energy artery risks becoming the epicentre of the next global economic shock.

SOURCE