Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has ordered the closure of the Strait of Hormuz, triggering fears of a global energy crisis. While US President Donald Trump has said stopping the Islamic republic’s “evil empire” is more important than crude prices, much of the world may see the situation differently.

Oil prices have already surged past $100 a barrel, and analysts warn that the crisis could lead to the largest supply disruption in modern history. Countries heavily dependent on Gulf energy supplies are particularly vulnerable. India, for instance, is already grappling with a severe LPG shortage as shipments through the strait slow.

So why does this narrow stretch of water carry such enormous global importance?

What is the Strait of Hormuz?
The Strait of Hormuz is a narrow sea passage connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. It lies between Iran to the north and Oman and the UAE to the south.

The strait is about 167 km long, with its width varying between roughly 97 km and 39 km, narrowing further in certain sections. The shipping corridor consists of two sea lanes, each about 3.2 km wide, separated by a similar buffer zone, through which oil tankers pass in opposite directions.

Despite its modest size, Hormuz is the most important energy chokepoint in the world. Roughly 20–25% of global seaborne oil and nearly 20% of global liquefied natural gas (LNG) shipments pass through it. These exports mainly originate from Saudi Arabia, Iraq, Iran, Kuwait, Qatar, the UAE and Bahrain.

There are very few alternative routes. Pipelines such as Saudi Arabia’s East–West pipeline and the UAE’s Habshan–Fujairah pipeline can bypass only about one-fourth of the oil normally transported through Hormuz. Any disruption therefore immediately becomes a global energy security concern.

Why Asia and India are especially vulnerable
Nearly 85% of the oil passing through Hormuz goes to Asian markets, with China, India, Japan and South Korea among the biggest importers.

India is particularly exposed. The country imports about 88% of its crude oil, consuming roughly 5.8 million barrels per day. Of this, 2.5–2.7 million barrels daily typically come from West Asian producers such as Saudi Arabia, Iraq and the UAE through the Strait of Hormuz. The strait also carries about 55% of India’s LPG imports and nearly 30% of its LNG, which is used for electricity generation, fertiliser production, CNG fuel and household cooking gas.

With tensions escalating, tanker movements through the strait have slowed sharply. India has begun seeking alternative crude supplies from Russia, but LPG and LNG supplies remain under pressure, worsening the domestic fuel crunch.

Why controlling Hormuz is difficult
Under international law, the Strait of Hormuz is classified as an international strait, meaning all ships enjoy the right of transit passage. Countries bordering the strait cannot legally suspend this passage.

In practice, however, the narrow geography makes it extremely vulnerable to disruption. Iran could potentially block traffic using naval mines, missiles, drones or fast attack boats. Its Shahed drones, which have a range of up to 2,500 km, can strike vessels throughout the region.

Even the US Navy, the world’s most powerful maritime force, would face major challenges in guaranteeing safe passage. Clearing mines or removing a damaged or sunken tanker in such a narrow waterway could take days or weeks. During that period, shipping and energy flows would remain severely disrupted.

The strait is currently monitored by regional navies (Iranian IRGCN/Artesh, Oman/UAE) and the US Navy’s Fifth Fleet, based in Bahrain, along with allied forces. But full control by US would require neutralising Iran’s coastal missile and drone capabilities, which could mean a far broader military conflict.

A chokepoint with a long history of conflict
Tensions around the Strait of Hormuz are not new. During the 1980–88 Iran–Iraq War, both sides attacked oil tankers in what became known as the “Tanker War”. The US eventually intervened, escorting Kuwaiti tankers through the strait.

In 1988, a US warship accidentally shot down Iran Air Flight 655, killing 290 people, dramatically escalating tensions in the region.

More recently, the strait has witnessed repeated incidents. In 2019, Iran seized the British tanker Stena Impero, and several commercial ships were damaged by drone or mine attacks. Shipping disruptions have periodically caused sharp spikes in oil prices.

Following the latest Middle East conflict in 2026, commercial traffic through Hormuz has again fallen sharply after reports of mine deployments and naval clashes.

The importance of the Strait of Hormuz predates the oil era. As early as the 7th century, it served as a vital trading hub linking Persian inland routes with India and other Asian markets.

By the 13th century, the island kingdom of Hormuz had become one of the most prosperous trading centres in the region. Traveller Marco Polo visited Hormuz in 1272 and again in 1293, describing it as a splendid city that paid tribute to Persia (modern-day Iran) and maintained fleets for both defence and piracy.

European powers later fought for control of this strategic route. The Portuguese captured Hormuz in 1507 and ruled it for more than a century before the Persian Safavid Empire expelled them in 1622. By the 18th century, Hormuz Island had come under Omani control.

British influence in the region later grew through a series of treaties. Britain guaranteed Oman’s control of Hormuz against Persian claims, and tensions over the island contributed to the 1856–57 Anglo-Persian War. The resulting 1857 Treaty of Paris forced Persia to renounce its claims over Hormuz and other Gulf islands.

In the modern era, the discovery of oil transformed the Strait of Hormuz into the world’s most critical energy artery. Today, nearly one-fifth of the world’s oil and a significant share of global LNG shipments pass through this narrow waterway, meaning even a brief disruption can send shockwaves through global markets.

That is why the Strait of Hormuz remains one of the most strategically sensitive waterways on the planet. And in moments of geopolitical confrontation, control over this narrow passage becomes a powerful tool. By threatening or disrupting traffic through Hormuz, Iran can exert pressure far beyond the region, influencing energy supplies, global prices and the stability of economies around the world.