Understanding the Strait of Hormuz
The Strait of Hormuz is a crucial waterway located between Iran and Oman. It serves as a vital corridor for approximately 20% of the world’s oil and gas supply. Recent tensions, particularly Washington’s military actions against Iran, have sparked fears that Iran might retaliate by attempting to close this strategic passage.
If Iran were to shut down the Strait of Hormuz, the consequences for global oil prices could be significant. A blockade would immediately disrupt the supply chain, sending oil prices soaring. Countries reliant on this route for energy imports would face severe economic impacts. Hence, the stability of this waterway is essential not just for the region, but for the entire global economy.
