What is the Strait of Hormuz and why is it so important?

ITV News

23-06-2025

The US strikes on Iran over the weekend have sent oil futures soaring, with fears Iran could retaliate by disrupting shipping in the Strait of Hormuz.
From the perspective of the global economy, there are few places as strategically important.
But what is the Strait of Hormuz, and why is it so significant?
At its narrowest point, it is just 33 kilometres (21 miles) wide, and it is the only way to ship crude to the rest of the world. Iran controls its northern side.
When it comes to moving oil, the strait is actually much narrower than its 21-mile official width.
The navigable shipping lanes for massive supertankers are only about two miles wide in each direction, requiring vessels to pass through both Iranian and Omani territorial waters.
What would happen if it closed?
There are fears Iran could disrupt shipping in the Strait of Hormuz, delaying supplies of oil and resulting in a r ise in oil prices across the board.
Iran's Foreign Minister Abbas Araghchi, when asked if the country will close the strait, said there are "various options" on the table.
While there have been no major disruptions to the global oil supply yet, the attacks on Iran by Israel and then the US have rattled investors, sending oil futures soaring by around 10%.
Brent crude oil briefly surged above $80 per barrel, according to Refinitiv data, the first time that's happened since January.
Before the conflict, prices had largely hovered between $60 and $75 a barrel since August 2024.
Iran boasts a fleet of fast-attack boats and thousands of naval mines that could potentially make the strait impassable, at least for a time.
It could also fire missiles from the Persian Gulf shore, as its allies, Yemen's Houthi rebels have done in the Red Sea.
The US, with its 5th Fleet stationed in nearby Bahrain, has long pledged to uphold freedom of navigation in the strait and would respond with far superior forces.
But even a relatively brief firefight could paralyse shipping traffic and spook investors, causing oil prices to spike, generating international pressure for a ceasefire.
Who would be hit hardest?
Several countries could be impacted, Saudi Arabia, the UAE, and Kuwait, China, India, Japan, the US, and South Korea.
A closure of the Strait would be particularly detrimental to China and other Asian economies, which rely on the crude oil and natural gas shipped through the waterway.
The Energy Information Administration (EIA) estimates that 84% of the crude oil and 83% of the liquified natural gas that moved through the Strait of Hormuz last year went to Asian markets.
China, the largest buyer of Iranian oil, sourced 5.4 million barrels per day through the Strait of Hormuz in the first quarter this year, while India and South Korea imported 2.1 million and 1.7 million barrels per day, respectively, according to the EIA's estimates.
In comparison, the US and Europe imported just 400,000 and 500,000 barrels per day, respectively, in the same period
On Sunday, India's Minister for Petroleum and Natural Gas, Hardeep Singh Puri, said on X that the country has 'diversified' its oil supplies in the past few years.
'A large volume of our supplies do not come through the Strait of Hormuz now. Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes,' he said.
'We will take all necessary steps to ensure stability of supplies of fuel to our citizens.'