Iran has declared the Strait of Hormuz closed and warned it will open fire on any vessel attempting to pass through the strategic waterway, according to Iranian media reports.
The move raises immediate concerns for global energy markets. Roughly one-fifth of the world’s total oil consumption transits the narrow corridor, making it one of the most critical chokepoints for global trade.
The Strait of Hormuz lies between Oman and Iran. It connects the Gulf to the Gulf of Oman and onward to the Arabian Sea.
At its narrowest point, the strait is just 21 miles (33 km) wide, with shipping lanes only about 2 miles (3 km) wide in each direction, leaving vessels highly exposed to potential disruption.
According to data from analytics firm Vortexa, more than 20 million barrels of crude oil, condensate and refined fuels passed through the strait each day on average last year.
Several members of OPEC — including Saudi Arabia, Iran, United Arab Emirates, Kuwait and Iraq — export most of their crude through the waterway, primarily to Asian markets.
Qatar, one of the world’s largest exporters of liquefied natural gas, ships nearly all of its LNG through the strait as well.
Any sustained closure of the Strait of Hormuz would likely send shockwaves through global oil and gas markets, disrupt supply chains and sharply increase energy prices worldwide.
