Iran-Israel Conflict: What Is Strait Of Hormuz And Why It Is Significant To Global Trade

Iran's Parliament approved the closure of the Strait of Hormuz, the most important supply passage of oil, NDTV reported on Sunday, citing state media

The decision came after the US joined the Israel-Iran war by attacking Iran's top nuclear sites earlier on Sunday.

"Iran is considering blocking the Hormuz Strait in the Persian Gulf, which sees more than 17 million barrels of oil pass through it every day," Kousari was quoted as saying earlier by state-run Press TV, Turkey’s state-owned Anadolu Agency had reported.

The strait holds strategic importance. Nearly 20 million barrels of crude oil and a third of global liquefied natural gas (LNG) shipments pass through it daily—roughly 20% of world oil consumption, according to the US Energy Information Administration. Closure, even temporary, would jolt international oil markets, which is why the US Navy’s Fifth Fleet in Bahrain is maintaining a close watch.

According to reports, this isn’t the first time Iran issued such threats. Over the years, Tehran has repeatedly hinted at using this strategic choke point as a form of retaliation, particularly during periods of heightened conflict or international sanctions.

Mapping the Strait

The Strait of Hormuz is a narrow maritime passage between Iran and Oman’s Musandam Peninsula, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. At its narrowest, it measures roughly 30 miles wide, but it is deep and free from significant maritime hazards, making it ideal for large tankers. The main commercial route follows a Traffic Separation Scheme (TSS) north of the Musandam Peninsula, although deeper waters to the south near the island of Didimar can also support shipping.

Seven of the eight major islands in the Strait are controlled by Iran, enhancing its ability to monitor and influence maritime activity. Among these, Abu Musa, Greater Tunb and Lesser Tunb remain disputed with the UAE. Iran also maintains key naval bases at Chah Bahar, Bandar Abbas and Bushehr, consolidating its military and strategic presence in the region.

Closing the Strait may hurt Iran's own economic interests, especially its oil exports to China. It would also risk straining ties with Oman and the Gulf Cooperation Council, countries that value unimpeded navigation. Internally, such a move could destabilise Iran’s already fragile economy, possibly fuelling domestic unrest.

For India, the Strait is no less vital. Nearly 70% of its crude oil and 40% of its LNG imports pass through this route. Qatar alone supplies nearly 10 million tonnes of LNG to India. Any disruption would jeopardise both energy security and prices, placing additional pressure on an already complex diplomatic balancing act between Tehran and Tel Aviv.

Amid stalled regional infrastructure projects like the Chah Bahar Port and the IMEC corridor, India’s strategic stakes in the region are significant. As global tensions rise, the Strait of Hormuz remains a vital artery in the world’s energy and geopolitical network.