Hormuz: the chokehold that shook the world

The Strait of Hormuz, a narrow waterway between Iran and Oman, serves as a lifeline for global energy trade. Daily, 20 to 21 million barrels of oil and condensates pass through it, accounting for roughly one-fifth of global oil consumption and nearly one-third of seaborne oil trade. The strait also handles significant volumes of liquefied natural gas (LNG), particularly from Qatar, as well as a third of global fertilizer trade and helium gas used in medical and industrial applications. The strait’s strategic importance stems from its geographic constraints—shipping lanes narrow to just two miles at their tightest point. Major oil producers like Saudi Arabia, Iran, UAE, Kuwait, and Iraq rely on it, while Asian economies such as China, India, Japan, and South Korea depend on uninterrupted oil flow. India, with 85% of its energy needs imported, is particularly vulnerable to disruptions, followed by South Korea, which has thinner energy reserves compared to Japan and China. Historically, the strait has been a flashpoint, particularly during the Iran-Iraq War of the 1980s, when both sides targeted oil tankers in what became known as the Tanker War. More recently, tensions escalated in February 2026 when Iran, under relentless US-Israeli bombing, shut down maritime traffic through the strait. According to UN data, shipping volumes dropped by nearly 97% as major shipping firms rerouted vessels to avoid the high-risk corridor. The shutdown sent shockwaves through global energy markets, exposing the fragility of supply chains. China, despite its heavy reliance on Hormuz, maintains resilience through diversified energy sources and strategic reserves. India, however, faces acute vulnerability due to limited domestic production and reserves. Japan and South Korea, while better prepared than India, still depend on stable oil flows, with South Korea’s thinner buffers making it slightly more exposed. The incident underscored the strait’s role as a pressure valve for global economies. Beyond oil, disruptions threaten critical supplies like fertilizers and helium, impacting agriculture, healthcare, and technology sectors worldwide. The crisis highlighted the need for alternative energy routes and stronger geopolitical safeguards to mitigate future risks.