The world’s most important 21 miles

When the United States and Israel attacked Iran on Feb. 28, Iran retaliated with attacks that effectively closed the Strait of Hormuz. Oil prices spiked worldwide – and the oversized importance of the strait became crystal clear.

Here is a look at the strait’s significance in maps and charts.

What is the Strait of Hormuz?

The Strait of Hormuz is a narrow passage of water between the Persian Gulf and the Gulf of Oman. It is used to transport a number of valuable commodities – most notably, oil.

Why is it important?

Around **a fifth **of the world’s traded oil typically flows through the Strait of Hormuz every day. Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran are all major exporters.

At its narrowest point, the strait is roughly 21 miles (34 kilometers) wide.

Ships travelling the strait must follow narrow shipping lanes to safely navigate the shallow water, making it even more of a chokepoint.

How much oil flows through the strait – and where does it go?

The Gulf nations are among the world’s biggest producers of crude oil. They also produce large quantities of refined products like gasoline, diesel, and jet fuel.

A sizable proportion of the oil that travels through the strait is sent to Asia, with China, India and Japan all major customers. But because oil prices are set internationally, disruptions in the Middle East affect prices everywhere, even in distant countries with their own resources.

How did the war affect shipping in the strait?

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Ship traffic in the strait has fallen dramatically since the start of the war.

Why did tanker traffic drop so much?

Iran has targeted oil infrastructure in the Persian Gulf, launching drones and missiles at the ports and refineries responsible for producing oil. Some oil fields halted their output, so there was less oil available for export.

As of March 17, Iran had only targeted around 20 tankers directly, but the threat has been enough to drive up insurance costs and dissuade others from attempting passage. Iran is still shipping its own oil through the strait.

Iran uses missiles and cheap drones to target Gulf infrastructure. Because the drones can be produced in large numbers – and because of how close tankers must sail to the Iranian coastline – they can be difficult to counter.

Can oil be exported without using the strait?

Some pipelines in the region can bypass the Strait of Hormuz, but their capacity is limited.

And just getting the oil beyond the strait does not necessarily place it out of harm’s way. Iran has struck Yanbu, on Saudi Arabia’s Red Sea coast, and the Emirati port of Fujairah just outside the strait.

How do reduced oil exports affect the rest of the world?

A reduction in global supplies means **higher prices **everywhere. This benefits some oil producing countries, like Russia, but is bad news for consumers. In the United States, a major oil exporter, the nationwide average price of gas is nearing $4.00, up around a dollar from just a month earlier.

A recent poll showed that 45% of Americans are “extremely” or “very” concerned about being able to afford gas in the next few months.

Some strategic oil reserves have been released to ease market pressure. But that is a stopgap measure. The full impact of the disruption will depend on how long it lasts.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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