The Strait of Hormuz has returned to the centre of global energy markets amid renewed tensions between Iran and the United States. Iranian authorities temporarily closed parts of the waterway during military drills, while Washington expanded its naval presence in the Gulf, reviving concerns over potential supply disruptions.
Linking the Gulf to the Arabian Sea, the narrow passage — just 33 km wide at its tightest point — handles roughly 20 million barrels of oil per day, or about 20% of global consumption, according to the US Energy Information Administration. The strait also carries about one-fifth of global LNG shipments, with Qatar a key supplier. In 2024, nearly 84% of crude and 83% of LNG transiting Hormuz were destined for Asia. China, India, Japan and South Korea together accounted for about 69% of flows, underscoring the region’s vulnerability. With around 3,000 vessels transiting monthly, even brief disruptions could send shockwaves through oil and gas markets, as per a report.
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