After the US and Israel attacked Iran on 28th February, Iran responded by blocking the Strait of Hormuz, a strategic point in the world’s oil transportation. What does this mean for the world? And how do one even block a strait? Let’s look at it:
What Is the Strait of Hormuz?
Strait of Hormuz is a 33 kilometres wide (at its narrowest point) strip of water between Iran and Oman connecting the Persian Gulf to the Indian ocean. It’s the only way out for oil tankers from Saudi Arabia, Iraq, Kuwait, the United Arab Emirates, and Iran itself. Every day 25% of the world’s oil passes through the Strait of Hormuz – or actually used to pass…
Even though the Strait itself is in international waters, United Nations rules allow countries to control waters up to 12 nautical miles (= 22kilometres) from their coast – and that’s exactly what Iran is doing now.
What Does “Blocking the Strait of Hormuz ” Look Like ?
Iran’s Islamic Revolutionary Guard Corps broadcasted a message to radios of ships present in the area, that every ship that tries to pass through the Strait of Hormuz would be attacked. And it didn’t just stay with words: Iran actually fired drone and missile strikes on several commercial ships. There is also a suspicion that Iran may have laid sea mines near the strait’s entrance, making passage physically impossible without risking an explosion.
What’s the Impact ?
As a result of the blockade, the shipping companies are changing routes – now they are mainly using land transport through Jordan and Syria. Which takes much longer, so it costs more and delays deliveries. Due to the war in the Middle East, global oil prices already rose by 20%, hitting 120 dollars per barrel – the highest price since 2008.
However, rising oil prices are not the only consequence. The blockade can also affect the development of the whole conflict. Whereas Benjamin Netanyahu (Israeli prime minister) went into this conflict determined to win at all costs, even if it took a long time, his ally Donald Trump (US president) had a different vision… He wanted a quick, decisive strike on Iran – something he would sell as an effective victory with zero costs to its voters. But with the strait blocked, this won’t work. Trump can’t declare victory if the global economy is spiraling into crisis. He could, but who would believe him?
Has Something Like This Happened Before?
The Strait of Hormuz blockade isn’t the first case where the maritime transport was taken hostage. During the war between Iraq and Iran in the 80s, both sides attacked oil tankers in the Persian Gulf which resulted in an increase in oil prices and panic on global markets until a ceasefire was negotiated.
Another example is the Suez Canal Crisis in 1956. After Egyptian President Gamal Abdel Nasser nationalized the Suez Canal, which was previously controlled by Britain and France. Britain, France, and Israel launched a military campaign to retake control of the canal. This led to the blockage of the canal, disrupting the flow of goods and thus increasing transportation costs.
The Suez Canal was then blocked once again in 2021. When the Ever Given container ship got stuck in there for six days. This incident cost an estimated $9.6 billion per day in global trade losses.
Why Should We Care?
Because the blockade of the Strait of Hormuz will cause prices to rise. Not only in transport, when both gasoline and airline tickets will be more expensive, but also in food. Since oil is used not only for fuel but also for fertilizers and packaging. Remember the energy crisis in 2022 when Russia attacked Ukraine…
Because the conflict could widen: Trump is already trying to drag other countries in it:
Wanna Know More?
Check out these articles (that were btw. used to write this article;):
- What is the strait of Hormuz and can the US stop Iran from blocking it?
- Why the Strait of Hormuz matters so much in the Iran war
- International Maritime Organisation I Information related to shipping and seafarers – Strait of Hormuz and the Middle East.
- Strait of Hormuz disruptions: Implications for global trade and development
- How US-Israel attacks on Iran threaten the Strait of Hormuz, oil markets
- Iran’s control over the Strait of Hormuz could raise consumer prices across the board
- Macrotrends.net I Crude Oil Prices (1946-2026)
- Hormuzský průliv: logika eskalace a eskalace logistiky – klíčový uzel zůstává už 3. týden uzavřený