Summary
Rising tensions between Iran and the US focus attention on the Strait of Hormuz. Iran closed parts of the strait during military drills, affecting the route where much global oil and gas passes. This area is crucial for international trade and any disruptions could impact global markets.
Key Facts
- The Strait of Hormuz is a narrow passage that connects the Gulf to the Arabian Sea.
- It is a vital route through which about 20% of the world’s oil is shipped.
- The USS Gerald R Ford, a US aircraft carrier, is heading to the Gulf amid increasing US military presence.
- Iran temporarily closed parts of the strait during military exercises, signaling it may respond to US threats.
- Closure of the strait could cause major disruptions in global oil and LNG trade.
- Major oil producers like Saudi Arabia, Iran, and the UAE rely on the strait to export oil.
- A large majority of the oil shipped through the strait goes to Asia, especially China, India, Japan, and South Korea.
- Iran and Oman have territorial waters in the strait, giving Iran leverage over the passage.
