Unless you have been living under a rock, you will have heard of the Strait of Hormuz. And you may be wondering why you keep hearing about it. Let me quickly give you an overview of what the strait is and why it is important to understand what it does because at the moment it is effecting many people’s travel plans.

What is the Strait of Hormuz?

The Strait of Hormuz is a narrow sea passage connecting the Persian Gulf to the Gulf of Oman. It lies between Iran (north) and Oman (south). It’s the ONLY sea route for oil exports from Gulf countries to the world. And currently it is closed to all ships because America and Israel have decided to start a war with Iran thus, Iran has closed the Hormuz Strait.

 Why is the Strait of Hormuz so important?

The Strait of Hormuz is important as around 20–25% of the world’s oil trade passes through it every day. That is about 20 million barrels a day move through this narrow choke point. Countries relying on it to be open so they can ship their oil to the world include Saudi Arabia, Iraq, Kuwait, Qatar and the UAE.

 If it’s disrupted, global oil prices rise immediately

 Iran’s Role with the Strait of Hormuz

 Iran has a big role with the Strait of Hormuz. In fact, Iran controls the northern coastline and nearby islands. While the strait is international waters, Iran has major influence over security there and has strong naval forces capable of threatening or disrupting shipping. And we are seeing this today.

 Why is the Strait of Hormuz always in the news lately?

 The strait is a major geopolitical flashpoint between Iran and the U.S. and its allies and this is why it is always in the news lately. Until the war is resolved, which the world hopes is soon, the closure of the Strait of Hormuz affects the entire global economy. And many countries are scrambling to get fuel from other sources.