Strait of Hormuz as a Global Energy Chokepoint

The Strait of Hormuz, located between Iran and Oman, is approximately 33 km wide at its narrowest navigable point and is the world's most critical oil transit route. In 2024, roughly 20 million barrels per day — about 20% of global petroleum liquids consumption — transited this waterway. It is also the route for roughly one-fifth of global LNG trade, primarily from Qatar. Any disruption — whether through military action, mining, or insurance market withdrawal — has an immediate and disproportionate effect on global energy prices because there is no adequate alternative route for most Persian Gulf oil exports. The escalation of US-Israel-Iran conflict in early March 2026 triggered a sharp fall in tanker traffic through the strait, with reports of over 150 ships anchoring outside to avoid risk.