Strait of Hormuz: What to know about this critical oil chokepoint; why it is important for global energy security | World News

Iran’s Islamic Revolutionary Guard Corps announced Thursday that it will conduct a two-day live-fire naval exercise in the Strait of Hormuz starting Sunday, February 1, according to Iranian state media. The announcement comes amid heavy US naval deployment in the region.

However, an Iranian official said on Sunday that Tehran had no plans to conduct live-fire drills in the strait. The US military issued a statement on Friday urging Iran not to proceed with such an exercise and warned it to avoid actions that could pose “undue risk”.

The exercise may have increased risks at one of the world’s most vital maritime chokepoints.

Amidst all this chaos, the biggest flashpoint was the Strait of Hormuz. Let’s understand its strategic importance, possible alternatives, location on the map and relevant factors.

Strait of Hormuz

The Strait of Hormuz is a narrow waterway located at the mouth of the Persian Gulf, bordered by Iran to the north and Oman (along with parts of the United Arab Emirates) to the south. It connects the Persian Gulf to the Gulf of Oman and ultimately to the Arabian Sea and serves as the only maritime passage from the oil-rich Persian Gulf to the open ocean. The strait is only 33 kilometers wide at its narrowest point, making it a geographical chokepoint. It is often described as a “critical oil choke point”.

strategic importance

Geopolitically, the Strait of Hormuz is one of the world’s most critical maritime corridors due to its strategic location and vulnerability to disruption. Iran effectively controls the northern bank, allowing it to exert influence over navigation, raising concerns during conflicts or escalations, as seen in recent threats to close the strait amid tensions with Israel and the United States. Historically, it has been vital to trade routes dating back centuries, facilitating the exchange of goods such as ceramics, ivory, silk and textiles. Its importance today stems from energy security.

(Image Source: ANI)

Why is this strait important for global energy security?

The strait is essential to global energy trade, transporting approximately 20-25% of the world’s seaborne oil exports and roughly 25% of liquefied natural gas (LNG) annually. According to the US Energy Information Administration (EIA), an average of 21 million barrels of oil flows through here per day in 2022, accounting for approximately 21% of global petroleum liquid consumption.

According to various reports, approximately $1.2 trillion in maritime trade passes through the Gulf region, and most of it relies on the Strait of Hormuz. 20% of global container shipments.

Important sea route for Asian markets

This route is also vital for Asian markets. More than 80% of the oil and LNG transported through this strategic chokepoint goes to Asian markets. Major economies such as China, India, Japan and South Korea are heavily dependent on this single sea route to meet their energy security needs.

Lockdown could cause economic problems worldwide

Given its strategic location, it has repeatedly become a flashpoint in regional tensions. Tehran has threatened to close the strait multiple times in retaliation for sanctions, military strikes or other pressure, most recently amid tensions in 2025. Such a closure would physically disrupt transit, block roughly one-fifth (about 20%) of the world’s daily oil supply and a significant portion of liquefied natural gas, and potentially cause serious global energy market shocks.

Energy analysts warn that even a temporary blockage could cause oil prices to soar. While the global economy is running smoothly with stable energy prices, it could fuel a global economic collapse by halting supply to industrial powers, triggering potential worldwide shortages, inflationary pressure, and supply chain crises around the world.

The U.S. Navy (Fifth Fleet, based in Bahrain) maintains a strong presence to ensure freedom of navigation, viewing the strait as essential to global economic health.

Alternative routes

There are very limited alternative routes, mainly pipelines, to bypass the Strait of Hormuz for oil exports from the Persian Gulf. Saudi Arabia, UAE and Iran have pipelines for oil exports. These pipelines provide some mitigation and can be rerouted in the event of an outage, but only cover a portion of what normally passes through the strait. Countries such as Iraq, Kuwait, Qatar and Bahrain have no viable pipeline alternatives and are therefore almost entirely dependent on the strait. There are also logistics, cost and time challenges.