Copyright infringement not intended

Source: The Economic Times

Context

After US attacks on Iranian military sites, Iran's Parliament agreed to a plan to close the Strait of Hormuz until the Supreme National Security Council makes a final decision.

What is the Strait of Hormuz?

• The Strait is at the entrance to the Persian Gulf and is very important to the world's energy supply because it's where about a fifth of all oil traded at sea goes.
• It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. It separates Iran and Oman.
• There are 33 km of water in the Strait, but the shipping lane is only 3 km wide in each direction.
• Most of the crude oil from these OPEC countries is shipped through this waterway.

Significance of the Strait of Hormuz

• The most important way for oil and LNG to get around the world is through the Strait of Hormuz.
• Over 25% of the world's oil trade by sea and 20% of the world's oil and petroleum use went through it in 2024–25.
• Also, 20% of the world's LNG trade, mostly from Qatar, went through the strait.

No Sea Route Alternatives

• Geographically, there is no other direct sea route that can be used to get around the Strait.
• Any problem would have a big effect on the flow of oil and gas around the world, which would lead to sharp price increases and other effects of inflation.

Source: Indian Express