Why the Strait of Hormuz matters so much in the Iran war
Why the Strait of Hormuz Matters in the Iran Conflict
A Vital Maritime Lifeline
The Strait of Hormuz, a narrow passage between Iran and Oman, serves as a critical route for global energy trade. This 50km-wide corridor, with its narrowest point spanning just 33km, connects the Gulf of Persia to the Arabian Sea. Its depth allows passage for the largest crude oil tankers, making it essential for Middle Eastern producers and international buyers.
Energy and Economic Impact
Approximately 20% of the world’s oil and liquefied natural gas (LNG) transit through the strait annually. In 2025, around 20 million barrels of oil and oil products moved through the waterway daily, representing nearly $600bn in trade. This includes shipments from Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE, with Qatar and the UAE accounting for significant LNG volumes.
During recent tensions, Iran’s actions disrupted this flow, causing global fuel prices to rise sharply. However, a 15% drop in oil prices followed the announcement of a ceasefire, which required “safe passage” through the strait as a condition. The agreement came after Iran had effectively closed the waterway following the February 28 attack by the US and Israel.
Threats and Security Measures
The strait’s strategic location means it lies within the territorial waters of Iran and Oman, up to 12 nautical miles from their coasts. Iranian drones, missiles, and fast attack boats posed risks to commercial vessels, with non-profit United Against Nuclear Iran reporting at least 24 ships were damaged and three suffered near misses by 2 April.
“You can be attacked, and you can’t get insurance or it is extremely expensive,” stated Arne Lohmann Rasmussen, chief analyst at Global Risk Management, during the period of instability.
Despite these threats, the US has not deployed warships to the strait, focusing its military response on air strikes against Iranian targets. In March, the US bombed anti-ship missile sites along the strait, demonstrating its commitment to securing the route. President Trump had previously urged allies and China to protect Hormuz with naval forces, but his call received limited support.
Global Consequences of Disruption
The strait’s closure affected not only the Middle East but also Asia and Europe. In China, which relies heavily on Iranian oil, the fuel crisis forced governments to implement emergency measures like reduced working hours and early university closures. Meanwhile, in Slovenia, the first EU nation to enforce fuel rationing, energy shortages disrupted daily life.
Historically, the strait has been a focal point of conflict. During the 1980s Iran-Iraq war, strikes on oil facilities escalated into a “tanker war,” where both sides targeted neutral ships to exert economic pressure. Kuwaiti tankers carrying Iraqi oil were especially vulnerable, highlighting the strait’s role in shaping global energy dynamics.
