Why the Strait of Hormuz matters so much in the Iran war
Why the Strait of Hormuz matters so much in the Iran war
Strategic Ceasefire and Global Trade
A temporary pause in hostilities between Iran and the United States was reached, contingent on ensuring uninterrupted movement of vessels through the Strait of Hormuz. The waterway, a vital artery for global energy supply, had been effectively closed by Tehran since the February 28 attack by the US and Israel. With 20% of the world’s oil and liquefied natural gas (LNG) transiting the strait, the disruption had already triggered a surge in fuel prices. The agreement led to a 15% decline in oil prices shortly afterward.
Geographical Significance
Linking the Gulf to the Arabian Sea, the strait’s narrow dimensions—ranging from 50 kilometers at its entry to 33 kilometers at its most constricted point—make it a critical chokehold for maritime traffic. It is deep enough to accommodate the largest crude oil tankers and serves as a gateway for Middle Eastern oil producers, including Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE. Similarly, LNG shipments, primarily from Qatar and the UAE, also rely on this route, with annual trade valued at nearly $600bn (£447bn).
Regional and Economic Consequences
The strait’s closure extended beyond energy. It disrupted fertiliser exports from the Middle East, where natural gas is a key production input. Over a third of global fertiliser trade typically passes through the waterway. Meanwhile, imports of food, medicine, and technology to the region also faced challenges. Normally, 3,000 ships traverse the strait monthly, but hostilities drastically reduced this number.
“You can be attacked, and you can’t get insurance or it is extremely expensive,” Arne Lohmann Rasmussen, chief analyst at Global Risk Management, told CBS News during the period of instability.
Iran’s Military Threats
Iran’s control of the strait’s narrowest section, which lies within its and Oman’s territorial waters, posed a significant risk. The country’s use of drones, missiles, fast attack boats, and potential mines created a dangerous environment for commercial vessels. By early April, non-profit United Against Nuclear Iran reported at least 24 ships had been damaged, with three more narrowly avoiding attacks.
US Military Actions and Regional Involvement
While the US has not stationed warships in the strait, it has focused on aerial strikes against Iranian targets. On March 18, US forces bombed anti-ship missile sites near the waterway. Despite former President Trump’s push for allies and China to bolster security by deploying naval assets, the request garnered limited support. He later asserted that the US could manage the situation independently.
Historical Precedents
During the 1980s Iran-Iraq war, attacks on oil infrastructure escalated into a “tanker war,” where both nations targeted neutral ships to pressure global markets. Kuwaiti tankers transporting Iraqi oil were particularly vulnerable. In response, American warships began escorting vessels through the strait, a tactic that may now be revisited in the current conflict.