What Is the Strait of Hormuz?
A 21-mile-wide channel between Iran and Oman at the mouth of the Persian Gulf. It’s one of the most important shipping chokepoints in the world:
- 20% of the world’s oil passes through it daily
- Significant volume of Asia-to-Europe trade transits nearby
- No practical alternative route for Gulf oil exports (pipelines can handle only a fraction)
Why Iran Can Block It
Iran’s coastline runs along the northern shore of the strait. Even damaged militarily, Iran can use mines, fast boats, anti-ship missiles, and drones to make commercial transit effectively impossible.
How It Affects You
When the strait is blocked, it creates a chain reaction:
- Oil supply drops globally, pushing fuel prices up everywhere
- Shipping companies reroute around Africa, adding 7-14 days and significant cost
- Higher shipping costs get passed to consumers on everything from groceries to electronics
- Insurance costs for vessels in the region spike, adding more to prices
Sources: IEA, Reuters, Al Jazeera