What Is Strait Of Hormuz? The Vital Oil Route Iran Has Closed, Threatening Energy Price Spikes

Israel-Iran war live updates: The Strait of Hormuz facilitates the trade of one-fifth of global oil consumption.

Iran has announced the closure of the Strait of Hormuz, a narrow waterway critical for oil trade.

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Iran’s powerful Islamic Revolutionary Guard Corps has announced the closure of the Strait of Hormuz, one of the world’s most critical energy corridors, dramatically escalating tensions in the region.

The declaration came on Monday as a senior commander warned that any vessel attempting to cross the strategic waterway would be attacked. The move marks one of the most serious geopolitical flashpoints yet in the ongoing confrontation between Iran on one side and Israel and the United States on the other.

A Direct Warning From the Guards

Brigadier General Sardar Ebrahim Jabari, senior adviser to the commander-in-chief of the Islamic Revolutionary Guard Corps, announced the decision, according to Iranian state media.

“The strait is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze,” Jabari was quoted as saying.

For years, Tehran has repeatedly signalled that it could shut the waterway in response to military pressure. However, despite periods of heightened confrontation, it has previously stopped short of enforcing a prolonged blockade.

What Is the Strait of Hormuz?

The Strait of Hormuz is a narrow maritime passage between Iran and Oman. It connects the Gulf to the Gulf of Oman and, beyond that, the Arabian Sea.

At its narrowest point, the strait measures just 21 miles (33 kilometres) across. The shipping lanes are even tighter, only about 2 miles (3 kilometres) wide in each direction, making it a chokepoint for global energy supplies.

Why It Matters to the World

Roughly one-fifth of global oil consumption passes through this corridor, underscoring its strategic weight. Data from analytics firm Vortexa shows that more than 20 million barrels of crude, condensate and fuel moved through the strait each day on average last year.

Several members of the Organisation of the Petroleum Exporting Countries, including Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq, ship most of their crude exports through Hormuz, primarily to Asian markets.

Qatar, one of the world’s largest exporters of liquefied natural gas, also relies heavily on the route, sending nearly all of its LNG cargoes through the strait.

Contingency Plans and Military Presence

Top producers within OPEC+, particularly Saudi Arabia and the United Arab Emirates, have increased oil exports in recent days as part of contingency planning.

Both countries have invested in alternative pipeline routes to reduce reliance on the strait. According to the U.S. Energy Information Administration, around 2.6 million barrels per day of spare capacity from existing UAE and Saudi pipelines could potentially bypass Hormuz.

Meanwhile, the United States Fifth Fleet, based in Bahrain, remains tasked with safeguarding commercial shipping in the region.