Why the Strait of Hormuz matters so much in the Iran war
Why the Strait of Hormuz Matters in the Iran War
The United States and Iran reached a pause in fighting, contingent on ensuring safe navigation through the Strait of Hormuz. This narrow waterway, critical for global energy supply, had been effectively shut down by Iran after attacks from the US and Israel on February 28. The strait, a lifeline for oil and liquefied natural gas (LNG) shipments, saw a sharp decline in traffic, pushing fuel costs upward. Following the agreement, prices fell by roughly 15%.
Geographical Importance
Located between Iran to the north and Oman, along with the United Arab Emirates (UAE), the strait is a vital link between the Gulf and the Arabian Sea. Its width varies, being only about 50 kilometers at the entrance and exit, and narrowing to 33 kilometers at its most constricted point. The strait’s depth supports the largest crude oil tankers, making it essential for major Middle Eastern producers and their buyers.
Trade Volumes and Economic Impact
Approximately 20% of the world’s oil and LNG traverses the strait annually. In 2025, it was estimated that 20 million barrels of oil and oil products passed through daily, valued at nearly £447bn. This includes shipments from Iran and other Gulf nations like Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE. Qatar dominates LNG exports through the strait, with 9.3 billion cubic feet per day shipped in 2024, alongside smaller volumes from the UAE.
Threats to Maritime Traffic
During recent tensions, Iran’s military actions, including drones, missiles, and fast attack boats, created risks for commercial vessels. The strait’s narrowest section lies entirely within Iranian and Omani territorial waters, extending 12 nautical miles from their coasts. As of April 2, at least 24 ships had been targeted, with additional near-misses reported. “Vessels can be struck without prior warning, and insurance coverage becomes costly or unavailable,” said Arne Lohmann Rasmussen, a Global Risk Management analyst, during the crisis.
Historical Context of the Strait
Before the current conflict, the strait had faced disruptions in the past. During the 1980s Iran-Iraq war, strikes on oil infrastructure escalated into a “tanker war,” where both sides attacked neutral ships to pressure economies. Kuwaiti tankers, transporting Iraqi oil, were particularly at risk. The US later deployed warships to safeguard the route, a strategy that could be revisited in the ongoing standoff.
Global Ripple Effects
Disruptions in the strait have rippled across continents. In Asia, China absorbs most of Iran’s oil exports, while nations like South Sudan and Mauritius imposed electricity cuts to mitigate fuel shortages. In Europe, Slovenia pioneered fuel rationing among EU countries. The strait’s closure also affected fertiliser trade, with one-third of global shipments passing through, as well as imports of food and medical supplies.
US Military Response
The US has opted for air strikes over deploying warships to the strait. On March 18, the military targeted Iranian anti-ship missile sites, aiming to secure the passage. President Trump had earlier urged allies and China to bolster security with warships, but his call received limited support. He later dismissed the need for international assistance, relying instead on unilateral military action to maintain the flow of maritime traffic.
