Why the Strait of Hormuz remains central to global energy security Premium

Explore the strategic significance of the Strait of Hormuz and its impact on global energy security and economies.

On February 16, Iran’s Islamic Revolutionary Guard Corps began a new round of military exercises in the Strait of Hormuz, according to state media.

The drills, launched on the eve of talks with the United States, were aimed at preparing for “potential security and military threats” in the strait, state television said, after Washington deployed a significant naval presence in the region.

The announcement has once again drawn significant attention to one of the world’s most critical energy chokepoints, a narrow maritime corridor whose stability underpins global oil flows and, by extension, the international economy. It could also increase the price of goods and services globally, and hit some of the biggest economies, including China, Japan and India, which are some of the biggest importers of crude oil through the strait. Especially for countries like India which are mainly dependent on energy imports, what happens in this narrow corridor has direct consequences.

In the past, Iran has threatened to close the strait, which would restrict trade and affect global oil prices, but has never followed through on the threat.

Both strategically and geographically, the Strait of Hormuz is one of the most important oil chokepoints in the world. It lies between Oman and the UAE on one side and Iran on the other. It links the Persian Gulf in the north with the Gulf of Oman to the south, and the Arabian Sea beyond.

At its narrowest, it is just 33 km wide. The designated shipping lanes within it are only about 3km in each direction separated by a buffer zone.