As the conflict between US, Israel and Iran continues, one element is increasingly becoming topical and that is the Strait of Hormuz. If the conflict affects the Strait of Hormuz, implications will not be contained to the Middle East. ALSO READ: Rwanda-bound travellers stuck in transit in Middle East Located between Iran and Oman, the Strait of Hormuz is one of the world most important chokepoints. Large volumes of oil flow through the strait, which connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, and very few alternative options exist to move oil out of the strait if it is closed. In 2024, oil flow through the strait averaged 20 million barrels per day (b/d), or the equivalent of about 20% of global petroleum liquids consumption, according to the U.S. Energy Information Administration (EIA). This is worth about $500bn in annual global energy trade. ALSO READ: China urges restraint amid US-Israel strikes on Iran If Iran retaliates the US-Israeli strikes with closing the Strait of Hormuz, analysts warn of an increase in oil prices. The strait is 33km wide at its narrowest point, with the shipping lane just 3km wide. Major oil and gas exporters in the Middle East rely on it to move supplies to international markets, while importing nations depend on its uninterrupted operation, Al Jazeera reports. ALSO READ: Who was slain Iranian Supreme Leader Ali Khamenei? The crude oil passing through the strait originates from Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. The strait also plays a critical role in the liquefied natural gas (LNG) trade. According to the EIA, in 2024, roughly a fifth of global LNG shipments moved through the corridor, with Qatar accounting for the vast majority of those volumes. China, India, Japan and South Korea accounted for a combined 69 percent intake of all crude oil and condensate flows through the strait in 2025. According to Iranian state media, the country’s Supreme National Security Council must make the final decision to close the strait, and it has to be ratified by the government. Any disruption to energy flows through Hormuz will also impact the global economy, driving up fuel and factory costs. Hamad Hussain, a climate and commodities economist at the United Kingdom-based firm Capital Economics, told Al Jazeera that for the global economy, a sustained rise in oil prices would add upward pressure to inflation. “If crude oil prices were to rise to $100 per barrel and remain at those levels for a while, that could add 0.6-0.7 percent to global inflation,” he said, noting that this would also lead to an increase in natural gas prices. “This could slow the pace of monetary easing by major central banks, particularly in emerging markets, where policymakers tend to be more sensitive to swings in commodity prices,” he added.
