What Is the Strait of Hormuz and What Impact Could It Have on International Trade If Iran Closes It?

Callum Sutherland

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Iran threatened to close the Strait of Hormuz, in what would serve as another act of retaliation, after the U.S. launched strikes on three key Iranian nuclear facilities over the weekend. While there was a brief reprieve in the tension after President Donald Trump announced a cease-fire between Israel and Iran on Monday, the conflict has erupted again, with both sides accusing each other of breaking the preliminary cease-fire terms. Now, concerns over the Strait of Hormuz are once again at an all-time high.

Iran controls the Northern side of the Strait of Hormuz, a passage which sees significant global trade pass through daily. If it so wished, Iran could block vessels from journeying through, or disrupt trade by seizing and attacking shipping containers and oil or gas tankers in the area. With roughly 20 million barrels of oil passing through the Strait daily, making up about a fifth of global consumption, any interruption could be catastrophic.

Here’s what to know about the Strait of Hormuz, its grave importance, and what stands to happen if the passage is disrupted amid the ongoing Israel-Iran conflict, of which the U.S. is now an active participant.

What is the Strait of Hormuz?

The Strait is narrow, stretching roughly 31 miles at its widest point. Iran is on its north bank opposite Oman and the United Arab Emirates (UAE).

Most oil exports from Kuwait, Iraq, Saudi Arabia, Qatar, and the UAE pass through, as well as Iran’s own exports. Around 20% of global liquid natural gas exports also flow through the passage, mostly originating from Qatar.

The passage has long been an area of tension and geopolitical significance.

In 2019, two ships were struck, one flying a Marshall Islands flag and the other from Panama, whilst passing through. The U.S. blamed Iran for the attacks, which Tehran denied. A month prior, four other tankers—two from Saudi Arabia, the others from the UAE and Norway—were struck by suspected underwater mines, which the U.S. accused Iran of planting.