Abstract
The Strait of Hormuz, a tiny waterway linking the Persian Gulf with the Arabian Sea, is one of the world’s most geographically critical chokepoints in geopolitics and energy shipping. This research piece analyzes the geopolitical, economic, and security implications of the Strait, highlighting its pivotal position in the global petroleum supply chain—carrying almost one-third of the world’s seaborne oil. It examines the interests of the main regional and international players, such as Iran, the GCC states, the United States, and the world’s energy-importing countries. It also examines historical flashpoints and tensions that render the Strait a potential international flashpoint. Through an interdisciplinary methodology that integrates political analysis, international law, and energy economics, this paper aims to underscore why the security and stability of the Strait of Hormuz are at the centre of Middle Eastern politics as well as of international economic stability and maritime law. The paper ends with strategic suggestions for diplomatic and legal arrangements to guarantee free and secure navigation in this vital sea conduit.
Introduction
Strait of Hormuz, single sea channel connecting oil-producing Persian Gulf (west) with Gulf of Oman and Arabian Sea (southeast). Over 20 percent of the world’s oil and liquefied natural gas exports transits the strait, which is the main route for petroleum exported by Iran, Iraq, Kuwait, Qatar, and the United Arab Emirates (though the United Arab Emirates can reroute most of its exports via its Fujairah emirate on the Gulf of Oman). The exports are geographically concentrated—roughly four-fifths export to Asian importing countries, particularly China, India, Japan, and South Korea—but the size of the supply significantly influences prices around the globe because of the low price elasticity of petroleum products. In addition to the Strait of Malacca, which links the Indian Ocean and the Pacific Ocean, the Strait of Hormuz is among the most critical oil chokepoints in the world economy.
The Strait of Hormuz, which lies between Oman and Iran, links the Persian Gulf and the Gulf of Oman and the Arabian Sea. The Strait of Hormuz is the global most critical oil chokepoint due to vast amounts of oil passing through the strait. In 2022, its average oil flow was 21 million barrels per day (b/d) or the equivalent of approximately 21% of worldwide petroleum liquids consumption. During the first half of 2023, overall oil shipments via the Strait of Hormuz were flat with 2022 as rises in oil products flow offsetting falls in crude oil and condensate.
Geostrategic Location
The strait of Hormuz is 35 to 60 miles (55 to 95 km) in area and separates Iran from Oman’s on the Arabian Peninsula (south). Its northern coastline has the Iranian port of both economic and military significance, Bandar Abbas, near which are the Iranian islands of Qeshm , Hormuz, Hengām , and Lārak. The United Arab Emirates is also close to the strait, located approximately 40 to 50 miles (65 to 80 km) to the strait’s most constricted point on either side of the Musandam Peninsula. While headquartered some distance from the strait, the U.S. Navy’s Fifth Fleet has been headquartered in Bahrain since 1995 and contributes to ensuring safe passage through the strait.
Oil tankers travel through the strait in incoming and outgoing shipping channels that are 2 miles (3 km) wide and divided by a two-mile buffer zone. Shipping channels are located primarily in Omani territorial waters, and partially in Iranian territorial waters, but are subject to international maritime law and under the auspices of the United Nations Convention on the Law of the Sea (UNCLOS). Iran control the strait to the north of the shipping vessel and Oman control the strait to the south. Even though Iran could interfere with shipping, the majority of the strait is deep enough (200 to 330 feet [60 to 100 meters]) to accommodate oil tankers and Iran cannot extend an ability to block the whole width of the strait for any significant amount of time.
Economic Significance
The Strait of Hormuz is the world’s most vital oil transit chokepoint, handling a significant portion of global energy trade. In 2023, approximately 20 million barrels of crude oil and refined products per day passed through the strait, accounting for about 20-30% of global seaborne oil trade and roughly one-fifth of global oil consumption. Additionally, around 20% of the world’s LNG, primarily from Qatar, the largest global LNG exporter, transits the strait. Importance oil-producing countries , including Saudi Arabia, Iran, Iraq, Kuwait, and the UAE, depend on the strait to export their crude oil and petroleum products, with over 80% of these exports destined for Asian markets such as China, India, Japan, and South Korea.The strait’s economic significance extends beyond oil and gas. It serves as a critical route for petrochemicals, electronics, and manufactured goods, linking Middle Eastern producers to global markets.
About one Fifth of daily global production, pass through the strait every day. For this reason strait of Hormuz also called the Critical oil Chokepoioil. The Strait of Hormuz is vital pass for the global energy trade; Twenty percent of world oil and 35% of world liquefied natural gas pass through this strait.
Any disruption, even temporary, could lead to substantial supply delays, increased shipping costs, and spikes in global energy prices. For instance, energy analysts estimate that a prolonged closure could push Brent crude oil prices above $150 per barrel, with worst-case scenarios projecting prices as high as $350 per barrel, potentially triggering a global economic downturn. The lack of viable alternative routes exacerbates this vulnerability. While Saudi Arabia and the UAE have pipelines bypassing the strait (e.g., Saudi Arabia’s East-West Pipeline with a capacity of 5 million barrels per day and the UAE’s Habshan-Fujairah Pipeline with 1.5 million barrels per day), these can only handle a fraction of the strait’s volume, estimated at 3.5-4.2 million barrels per day, insufficient to offset a full closure.