Why the Strait of Hormuz matters so much in the Iran war
Why the Strait of Hormuz Matters in the Iran Conflict
A temporary agreement between Iran and the United States has established a pause in hostilities, contingent on ensuring “safe passage” through the Strait of Hormuz. The waterway, a critical artery for global energy trade, had been effectively disrupted by Iran following attacks by the U.S. and Israel on 28 February. This strategic chokepoint, which facilitates the transit of approximately 20% of the world’s oil and liquefied natural gas (LNG), saw fuel prices spike as tensions escalated. However, the announcement of the ceasefire triggered a 15% decline in oil prices shortly thereafter.
A Vital Maritime Corridor
Spanning between Iran to the north and Oman, along with the United Arab Emirates (UAE), the strait measures just 50 kilometers at its entrances and narrows to 33 kilometers at its most constricted point. Its depth accommodates the largest crude oil tankers, making it essential for Middle Eastern producers and consumers alike. In 2025, the U.S. Energy Information Administration (EIA) estimated that 20 million barrels of oil and related products traversed the strait daily, representing nearly $600 billion in annual energy trade. This flow includes oil from Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE, with Qatar and the UAE contributing significantly to LNG shipments.
About one-third of the global fertiliser trade also passes through the strait, as natural gas is a key component in its production. Meanwhile, the region relies heavily on this route for imports such as food, medicines, and technology. Normally, around 3,000 ships navigate the strait monthly, but recent hostilities drastically reduced this number, with Iran issuing threats against tankers and commercial vessels.
“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 period of instability.
The strait lies entirely within Iran and Oman’s territorial waters at its narrowest point, according to United Nations maritime rules. This means ships passing through must navigate within 12 nautical miles of the coastline, a zone vulnerable to Iranian drones, missiles, fast attack boats, and potential mines. As of 2 April, non-profit United Against Nuclear Iran reported at least 24 commercial vessels had been struck, alongside three near misses.
Global Ripple Effects
Disruptions in the strait have had wide-reaching consequences. In Asia, China accounts for nearly 90% of Iran’s oil exports, placing significant strain on the region’s energy markets. The fuel crisis has led to measures like shortened workweeks, home office mandates, and early university closures in various countries. In Africa, South Sudan and Mauritius implemented electricity rationing, while Slovenia became the first EU nation to enforce fuel restrictions.
The U.S. has not stationed warships in the strait, focusing its military efforts on air strikes against Iranian targets. On 18 March, U.S. forces bombed anti-ship missile sites along the waterway. President Trump had previously urged allies and even China to deploy warships for securing Hormuz, but his call received limited support. He later asserted the U.S. could manage the situation independently.
Historically, the strait has been a focal point of conflict. During the 1980s Iran-Iraq war, strikes on oil facilities led to a “tanker war,” where both nations targeted neutral vessels to impose economic pressure. Kuwaiti tankers carrying Iraqi oil were particularly at risk, prompting the U.S. to intervene by escorting shipments through the strait.
