When discussing global energy supply, the mind often turns to sprawling oil fields, miles of pipelines, or massive tankers transporting crude across oceans. Yet, there is one narrow waterway whose significance far outweighs its size: the Strait of Hormuz.
At just 33 to 34 kilometers at its narrowest point, this passage connects the Persian Gulf with the Gulf of Oman and ultimately the Arabian Sea. Despite its modest width, it carries nearly one-fifth of the world’s oil and roughly a third of global liquefied natural gas (LNG) shipments. In effect, it serves as a lifeline for the global economy.
For energy-importing nations like India, the Strait of Hormuz is more than a distant waterway; it is a critical artery influencing petrol prices, electricity bills, airfares, and even the cost of everyday groceries. Understanding the strait’s strategic importance—and the consequences of its potential closure—is essential for both policymakers and the general public.
Geography and Strategic Location
The Strait of Hormuz lies between Iran to the north and Oman and the United Arab Emirates to the south. It is the only maritime exit from the Persian Gulf to the open sea, making it the key chokepoint for energy shipments from oil-rich Gulf nations, including Saudi Arabia, Iraq, Kuwait, Qatar, and the UAE.
Virtually every tanker carrying crude or LNG from these countries must navigate this narrow waterway to reach markets in Asia, Europe, and beyond. Its geographical bottleneck makes it not only vital but highly vulnerable. Any disruption—whether from conflict, natural disaster, or accident—can ripple across global energy markets almost instantly.
Why the Strait of Hormuz Matters
To grasp the strait’s global significance, consider these figures:
- 20% of the world’s oil trade passes through it daily, equating to approximately 18–20 million barrels.
- One-third of global LNG shipments transit the strait.
- The U.S. Energy Information Administration labels it the most critical oil chokepoint worldwide.
For India, which imports more than 80% of its crude oil needs, much of it from the Gulf, the strait is indispensable. Any obstruction or threat to its passage could have immediate domestic consequences, impacting transportation, manufacturing, and household energy costs.