Strait of Hormuz: Strategic Importance and Current Threats
What is the Strait of Hormuz?
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A narrow waterway (55–95 km wide) between Iran and the Arabian Peninsula, linking the Persian Gulf with the Gulf of Oman and Arabian Sea.
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It is the world’s most critical oil chokepoint, with ~20 million barrels of oil per day passing through in 2024 — about 25% of global oil trade.
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Key exporters using it: Saudi Arabia, Iraq, Kuwait, UAE, Qatar, and Iran.
Why is the Strait in News ?
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Escalating Iran-Israel conflict following:
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Israel's bombing of Iranian nuclear and military sites (June 13, 2025).
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Iranian missile retaliation.
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Fears that Iran may block or disrupt the strait — affecting global oil and gas supply chains.
Historical Precedents
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1980–88 Iran-Iraq War: Known as the Tanker War — attacks on oil tankers led to U.S. military escort of Kuwaiti ships.
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2011–12: Iran threatened to block the Strait over Western sanctions.
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2019: Tensions after U.S. exit from the nuclear deal; Iran seized UK’s oil tanker Stena Impero and shot down a U.S. drone.
Current Impact and Response
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Oil Price Volatility:
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Brent crude rose briefly post-conflict but later dipped to $77.01/barrel.
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Shipping Risks:
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Risk of delays, higher insurance, and logistics costs.
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Alternative Supply Routes
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Land Pipelines:
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Saudi Arabia (ARAMCO) and UAE pipelines bypass the Strait.
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Iran's Goreh–Jask pipeline to Gulf of Oman offers partial bypass.
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However, sea routes via the Strait remain indispensable.
India’s Exposure and Strategy
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India’s dependence:
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40% of crude oil and 54% of LNG imports pass through the Strait.
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1.5 million barrels/day (of India’s 5.5 million daily oil use) pass through it.
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Contingency Plans:
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Government may consider West African oil imports to mitigate risks.
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OPEC+ production cuts since 2022 have marginally reduced oil flows via the Strait.
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80% of the oil shipped through the Strait is destined for Asian countries.