The Strait of Hormuz: Why This Tiny Waterway Matters Globally

Discover why the Strait of Hormuz is one of the world's most important waterways and how it affects oil prices, global trade, and international politics.

By Hannah Bird

2 min read

Oil tankers navigate the Strait of Hormuz, one of the world's most strategically important maritime chokepoints, through which around a quarter of global oil and natural gas supplies pass.

The Narrow Passage That Keeps The Global Economy Moving

What is the Strait of Hormuz, and why is it mentioned so often? It may seem like a distant or complicated trade route, but it's actually easier to think of it as a narrow waterway located between Oman and Iran in the Middle East.

Before we go any further, let's break down the name. A strait is simply a narrow passage of water connecting two larger bodies of water—like a corridor connecting two rooms. Hormuz is the name of the region, originating from an ancient kingdom that once controlled the area centuries ago. Put together, the Strait of Hormuz simply means the narrow sea corridor of Hormuz.

Why does so much of the world's oil pass through one place?

We hear so much about the Strait of Hormuz because around 25% of the world's oil and natural gas passes through it on its way from the Middle East to the rest of the world. Every day, enormous oil tankers transport these resources from countries such as Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates.

The oil and natural gas that pass through the Strait help power our everyday lives. Oil is refined into fuels for cars, trucks, ships, and aeroplanes, while natural gas is used to heat homes and generate electricity. This means that events in the Strait can affect millions of people thousands of miles away. If less oil and gas can pass through the Strait, global supplies become tighter, causing energy prices to rise.

Why is it called an "oil chokepoint"?

The Strait of Hormuz is often called an oil chokepoint because such a large share of the world's energy passes through a single, narrow corridor. At its narrowest point, the Strait is only about 35 kilometres (22 miles) wide—roughly the distance of a marathon.

This is what creates the "chokepoint." So many ships must pass through such a small space that any disruption can have global consequences. Think of the Strait like an hourglass: no matter how much sand (or how many ships) is at the top, everything has to pass through one narrow opening before reaching the bottom.

Who controls the Strait of Hormuz?

So, who actually "owns" the Strait of Hormuz?

Although much of the Strait lies within the territorial waters of Oman and Iran, neither country has complete control over it. Under international law, ships from all nations have the right of transit passage, allowing them to navigate through the Strait even when it passes through territorial waters. However, countries with a significant naval presence in the region can still exert considerable influence over maritime security and shipping operations.

This has made the Strait a major source of geopolitical tension. Any threat to shipping in the area raises concerns about potential disruptions to global energy supplies. As a result, many countries consider keeping the Strait open to be a strategic priority, which is why it has remained at the centre of international tensions for decades.

Author: Hannah Bird
Editor & Publisher: Lucía Lobato

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