The Strait of Hormuz is a strait between Iran to the north and the United Arab Emirates and Oman to the south. It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea and further leads to the Indian Ocean. This geographic position makes it one of the busiest and most critical waterways and chokepoints in the world.
What is the Strategic Importance of the Strait of Hormuz? Who Controls It? What Happens if Passage is Blocked?
Control and Relevant Jurisdictions
No single country has absolute control over the Strait of Hormuz. Iran, Oman, and the UAE control the territorial waters through which the strait runs. The United Nations Convention on the Law of the Sea or UNCLOS allows for transit passage because it is a waterway that connects two areas of the high seas and exclusive economic zones.
Hence, according to international law, the passage cannot be blocked or suspended by bordering states. It is worth noting that Iran is a signatory to the UNCLOS but has not ratified it. This means that it does not fully accept all of its provisions. It has threatened to block passage as a response to geopolitical tensions and pressures from adversaries.
Iran specifically controls the northern half of the strait and has prepositioned several military assets like anti-ship missiles, fast-attack boats, and naval vessels to maintain regional military presence and dominance. The country essentially uses this geographic advantage as geopolitical leverage against threats from the United States and its allies.
Closing the Strait of Hormuz would likely trigger military retaliation, especially from the U.S. and its allies, because it would block a vital global shipping route. The Fifth Fleet of the U.S. Navy is stationed in the region to ensure freedom of navigation. A direct conflict could ensue if Iran or a bordering state disrupts normal activities.
Strategic Importance of the Strait of Hormuz
The Strait of Hormuz has both economic importance and geopolitical significance. It is considered the most important oil transit in the world by the U.S. Energy Information Agency. This means that a disruption will affect the global prices of oil and gas and could even trigger an international conflict. Below are the important pointers to take note:
• Global Oil Supply: About 20 to 30 percent of the global oil supply and another 30 percent of the global liquified natural gas supply pass through the strait each day. Producers like Kuwait, Iran, Iraq, Qatar, Saudi Arabia, and UAE depend on it to export their hydrocarbon products to various international destinations.
• Economic Impact: The economic importance of the Strait of Hormuz concerns both domestic hydrocarbon producers and the entire global economy. A disruption will affect not only the domestic economies of exporters but also the stability of the global economy because of its impact on the global prices of oil and gas.
• Other Supply Chains: Moreover, aside from hydrocarbons, it is a vital maritime route for general commercial goods like electronics, consumer products, and machines coming to and moving from the Persian Gulf. A blockade will disrupt several global supply chains due to shipment delays and increases in costs.
• Geopolitical Hotspot: Iran considers it as a strategic asset that it could use as leverage to advance its national and regional interests. Maintaining freedom of navigation and normal movements across the Strait of Hormuz is a top priority for international powers that are dependent on hydrocarbons from the Middle East.
There are very few alternative options to move oil out of the strait. These include the East-West Pipeline or Petroline of Saudi Arabia and the Habshan–Fujairah Pipeline of UAE. Both are not available to other countries in the Middle East. Shipping around the Cape of Good Hope in Africa is also an alternative route but this adds significant cost and time.
Instances of Threats and Disruptions
One of the characteristics of the Strait of Hormuz is its narrowness. It is only about 33 kilometers or 21 miles wide at its narrowest point and narrow shipping lanes are about 2 miles wide in each direction. This makes it susceptible to disruption due to blockade, deliberate attacks, or accidents, Even one to two vessels can obstruct maritime traffic.
Nevertheless, considering its economic and geopolitical importance, the strait has been disrupted or threatened a couple of times, usually because of geopolitical tensions. One notable instance was the Tanker War between Iran and Iraq during the 1980-1988 Iran-Iraq War. Both sides attacked oil tankers and commercial shipping in the Persian Gulf.
The Tanker War did not completely halt the maritime activity in the area but the attacks rendered navigation extremely hazardous. The U.S. had to escort ships under the U.S. flag and were thrown into a direct confrontation with Iran. The entire incident was also the first time the world witnessed the economic importance of the Strait of Hormuz.
Moreover, from 2011 and 2012, as a response to the economic sanctions by the U.S. and Europe over its nuclear program, Iran threatened to block it. The global market panicked and it resulted in oil and gas price spikes. This has also been observed during the rebel threats from Houthi in 2023 and 2024 and the escalated Iran-Israel War in 2025.
Takeaways and Important Pointers: The Strategic Importance of the Strait of Hormoz to the Global Community
The Strait of Hormuz is generally economically important to hydrocarbon producers and exporters in the Middle East because it serves as the most efficient maritime route to transport their oil and gas products in the world market. Remember that More than 20 percent of oil and 30 percent of liquified natural gas pass through this waterway each day.
Moreover, aside from its role in transporting hydrocarbons from the Middle East, it is also one of the main channels for transporting other goods from and to the Persian Gulf. The strait is actually the most efficient route for imports and exports in the region. This means that it is an important component of the global supply chain and international trade.
The Strait of Hormuz is also geopolitically important. Iran has used its control of its northern area as leverage against international pressures. Countries in the Middle East and Western powers like the United States have maintained military presence near the area to ensure freedom of navigation and smooth maritime activities throughout the waterway.
Hence, a blockade or even a mere threat to block or disrupt maritime movements in the area will result in global oil and gas price hikes. This will impact hydrocarbon-dependent industries and sectors and can trigger inflation. The economic importance of the Strait of Hormuz has compelled international powers to also consider military intervention.
FURTHER READINGS AND REFERENCES
- Dunn, C. and Barden, J. 21 November 2023. “The Strait of Hormuz is the World’s Most Important Oil Transit in the World.” Today in Energy. United States Energy Information Agency. Available online
- Lott, A. and Kawagishi, S. 2022. “The Legal Regime of the Strait of Hormuz and Attacks Against Oil Tankers: Law of the Sea and Law on the Use of Force Perspectives.” Ocean Development & International Law. 53(2-3): 123-146. DOI: 1080/00908320.2022.2096158
- Sayin, Y. and Kilic, F. 2020. “The Strait of Hormuz and Iran’s International Relations.” Eurasian Research Journal. 2(1): 29-59. ISSN 2519-2442,
- Rizkiyani, H. M., Trismadi, T., Supriyadi, A. A., Widodo, P., Saragih, H. J. R., and Suwarno, P. 2025. “Geopolitical Dynamics of Maritime Security in the Strait of Hormuz.” International Journal Of Humanities Education and Social Sciences. 4(6). DOI: 55227/ijhess.v4i6.1351