Strait of Hormuz

With a third of the world’s sea-borne oil passing through it every day, the Strait of Hormuz is a strategic artery linking Middle East crude producers to key markets in Asia Pacific, Europe, North America and beyond. Last week, an Iranian Revolutionary Guards commander threatened that Tehran will block oil shipments through the waterway in response to calls of the United States to ban all Iranian oil exports

What is it?

It is a waterway separating Iran and Oman, connecting the Gulf to the Gulf of Oman and the Arabian Sea. It is 21 miles wide at its narrowest point, but the shipping lane is only two miles wide in either direction.

Why it matters?

• The US Energy Information Administration estimates a record 18.5 million barrels per day of sea-borne oil passed through it in 2016, a hike of 9% from 2015
• Sea-borne crude and condensate flows transiting the Strait are estimated at around 17.2 million bpd in 2017 and around 17.4 million bpd in the first half of 2018
• Most of the crude exported from Saudi Arabia, Iran, the UAE, Kuwait and Iraq passes through it. It is also the route for nearly all LNG from lead exporter Qatar