The Strait of Hormuz is a narrow sea passage between Iran and Oman that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is one of the world's most important energy chokepoints because large volumes of crude oil, petroleum products and liquefied natural gas move through it every day.
According to the U.S. Energy Information Administration, total oil flows through the strait averaged about 20.9 million barrels per day in the first half of 2025, roughly equal to 20% of global petroleum-liquids consumption. That does not mean 20% of all energy in the world moves through Hormuz, but it does show why the route is unusually important to oil markets.
Several major Gulf producers depend on the strait to reach customers in Asia, Europe and elsewhere. If shipping slows because of conflict, mines, attacks, insurance restrictions or port disruption, traders may expect supply to tighten. Prices can rise even before physical shortages appear because markets react to expected future supply.
There are bypass routes, including pipelines in Saudi Arabia and the United Arab Emirates, but their spare capacity is limited compared with normal flows through Hormuz. That is why a full closure would be difficult to replace quickly.
Liquefied natural gas also moves through the strait, especially from Qatar. Disruption can therefore affect gas markets as well as oil.
A common misunderstanding is that every headline about Hormuz means the strait is completely closed. In practice, traffic can be partially reduced, delayed or rerouted without a total shutdown. Shipping data also has limits because some vessels may reduce or switch off tracking signals.
For readers, the key questions are: how much traffic is actually moving, whether alternative routes are operating, and whether the disruption is temporary or sustained.