Why Hormuz has become critical chokepoint in Iran war

Iran has effectively restricted traffic through the Strait of Hormuz following US and Israeli strikes on February 28, creating a de facto blockade of one of the world’s most critical energy corridors. As the BBC reports, the disruption has sent global oil and gas markets into turmoil, underscoring the strategic importance of the narrow waterway.

The strait, which links the Gulf to the Arabian Sea, handles roughly 20% of global oil and liquefied natural gas (LNG) flows. In 2025 alone, around 20 million barrels of oil passed through it daily, representing hundreds of billions of dollars in annual trade. Major producers, including Saudi Arabia, Iraq, Qatar, Kuwait and the United Arab Emirates, depend on the route, while Qatar also ships a significant share of the world’s LNG through the corridor.

Since the escalation, shipping activity has sharply declined. Although Iran has not imposed a formal naval blockade, a combination of threats — including drones, missiles, fast attack boats and the potential deployment of naval mines — has deterred most commercial traffic. Verified reports indicate multiple attacks and near-misses involving commercial vessels, making transit through the strait both dangerous and prohibitively expensive due to soaring insurance costs.

The disruption has had global consequences. Energy prices remain volatile and elevated, with Asia particularly exposed. China, a major buyer of Iranian oil, faces increased costs that ripple through global manufacturing and supply chains. Governments across Asia have introduced emergency measures such as remote working, reduced working hours and early school closures to conserve energy. Similar strains are visible elsewhere, with electricity restrictions reported in parts of Africa and fuel rationing introduced in Europe.

Despite the risks, limited shipping continues under strict conditions. Iran has stated that “non-hostile” vessels may pass if they coordinate with its authorities, and a small number of ships — including those linked to China, India and regional actors — have successfully transited the strait. However, overall traffic has dropped dramatically, by as much as 95%, since the conflict began.

Efforts to bypass Hormuz highlight its irreplaceability. Saudi Arabia and the UAE operate pipelines that can divert some shipping away from the strait, but these alternatives lack sufficient capacity to offset the full disruption. Analysts estimate that even with these routes, global supply could fall by millions of barrels per day.

The current crisis echoes past confrontations, such as the “tanker war” of the 1980s, when military escorts were required to maintain shipping flows. For now, however, no large-scale naval operation has been launched to secure the passage, leaving global markets exposed to prolonged instability.

By Tamilla Hasanova