Why the Strait of Hormuz matters so much in the Iran war
The Strategic Importance of the Strait of Hormuz in the Iran Conflict
A truce between Iran and the United States was announced, contingent on ensuring unimpeded access through the Strait of Hormuz. This narrow waterway, a linchpin in global energy logistics, had been effectively closed by Iran since the U.S. and Israel launched an assault on the country on 28 February. The strait serves as a critical artery for maritime transport, facilitating the movement of roughly 20% of the world’s oil and liquefied natural gas (LNG) shipments. During the escalating tensions, fuel prices surged globally, but the ceasefire triggered a 15% decline in oil prices shortly after its announcement.
A Vital Maritime Corridor
Located between Iran to the north and Oman, alongside the United Arab Emirates (UAE), the strait’s width varies from 50 kilometers at its entry and exit points to 33 kilometers at its most constricted section. Its depth supports the passage of the largest crude oil tankers, making it essential for Middle Eastern producers like Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE, as well as their international clients. In 2025, the U.S. Energy Information Administration (EIA) estimated 20 million barrels of oil and related products traversed the strait daily, representing nearly $600 billion in annual energy trade.
Disruption and Regional Fallout
Iran’s blockades and threats to attack vessels significantly reduced ship traffic, with around 3,000 commercial ships typically navigating the strait each month. During the conflict, this number dropped sharply, affecting not only Iran’s economy but also global markets. Asia, particularly China, faced severe repercussions, as it is estimated to absorb nearly 90% of Iran’s exported oil. Meanwhile, in Africa, South Sudan and Mauritius introduced electricity rationing, while Europe saw Slovenia pioneer fuel conservation measures among EU nations.
Threats to Maritime Security
The strait’s narrowest point lies entirely within the territorial waters of Iran and Oman, stretching up to 12 nautical miles from their coasts. This positioning allowed Iran to deploy drones, missiles, fast attack boats, and potential mines to disrupt shipping. By 2 April, United Against Nuclear Iran reported at least 24 commercial vessels had been struck, alongside three close calls, highlighting the peril faced by maritime traffic.
U.S. Military Response
The United States opted for air strikes over direct naval intervention, targeting Iranian anti-ship missile installations along the strait. On 18 March, U.S. forces conducted bombings to weaken Iran’s capacity to block the waterway. Former President Trump had earlier urged allies and even China to deploy warships to secure Hormuz, but his call received limited support. He later asserted that the U.S. could manage the situation independently, recalling past actions during the Iran-Iraq war, when strikes on oil facilities escalated into a “tanker war” involving neutral vessels.
“You can be attacked, and you can’t get insurance or it is extremely expensive,” said Arne Lohmann Rasmussen, chief analyst at Global Risk Management, during the period of instability.
