Strait of Hormuz: Its Strategic Role in Global Oil Trade & Economic Impact
Strait of Hormuz: Its Role in Global Oil Trade & Economic Impact The Strait of Hormuz is one of the most strategically important waterways in the world. Connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, it serves as a critical chokepoint for global oil transportation. Nearly a fifth of the world’s oil passes through this narrow passage, making it central to global energy security and economic stability. What is the Strait of Hormuz? The Strait of Hormuz is a 21‑mile (34 km) wide channel located between Oman and Iran . Its narrowest point is approximately 21 miles across, allowing only a limited number of ships to pass at a time. Strategic Location: Key to Persian Gulf oil exports Oil Volume: Over 18 million barrels per day transit through the strait Economic Importance Global Oil Supply Nearly 20% of the world’s petroleum liquids pass through the Strait of Hormuz, including crude oil a...