Context
The Strait
of Hormuz
One of the most important maritime chokepoints in the global economy.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the open ocean. It is one of the most strategically important shipping corridors in the world.
Strategic importance
Why the Strait of Hormuz Matters
The Strait of Hormuz is one of the most critical maritime chokepoints in the world. Roughly a fifth of the world's oil supply passes through this narrow corridor connecting the Persian Gulf with global markets.
Any disruption in the area can affect shipping routes, energy prices and international trade. Understanding what is happening in the Strait is therefore essential for anyone following global geopolitics or maritime activity.
Data
Key Facts
- Around 20–21 million barrels of oil pass through the Strait of Hormuz every day.
- This represents roughly 20% of global petroleum consumption.
- The shipping lane is approximately 21 miles wide at its narrowest point.
- Tankers carrying crude oil, LNG and refined petroleum products transit the Strait continuously.
- Several of the world's largest oil exporters rely on the Strait to reach international markets.
Risk
Why Disruption Matters
The Strait of Hormuz plays a central role in global energy supply. Major oil exporters including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran rely on this corridor to reach international markets.
If shipping traffic is restricted or threatened, energy prices can rise rapidly as markets react to the risk of supply disruption.
Even limited incidents in the Strait can trigger volatility in oil markets, shipping insurance costs and tanker freight rates.
Exposure
Key Exposure Metrics
Critical figures that quantify the Strait of Hormuz's role in global energy supply.