STRAIT OF HORMUZ

The Strait of Hormuz is a strategically important strait or narrow strip of water that links the Persian Gulf with the Arabian Sea and the Gulf of Oman.
It is only 21 to 60 miles (33 to 95 km) wide throughout its length.
It is a geographic chokepoint and the main artery for the transport of oil from the Middle East and one-third of the world’s liquified natural gas (LNG).
Iran and Oman are the nearest countries to the Strait of Hormuz and Share territorial rights over the waters.
Over 90 per cent of oil exports from the Persian Gulf pass through the Strait of Hormuz.
This includes most of the oil from the Organization of Petroleum Exporting Countries (OPEC) members Saudi Arabia, Iran, the UAE and Kuwait.

Qatar the world's biggest exporter of LNG, sends most of its LNG through the strait as well.
It is commonly believed that a tanker accident, a terrorist attack or a military effort to close the Strait would send energy prices skyrocketing, threatening the global economy.
Some scenarios might temporarily interrupt oil flows, while others such as a major Iranian military attack, might have longer-term consequences.

The widths of the shipping lanes are about three km wide in each direction because the water is not deep enough for oil tankers.
It has often been the site of conflict and there have been many threats by neighbouring countries to close it.
In the 1980s during the Iran-Iraq War Iran threatened to close the strait after Iraq disrupted shipping in the strait.
It was also home to a battle between the United States Navy and Iran in April 1988 after the U.S. attacked Iran during the Iran-Iraq War.
In the 1990s, disputes between Iran and the United Arab Emirates over control of several small
Islands within the Strait resulted in further threats to close the strait.
By 1992 Iran took control of the islands but tensions remained throughout the 1990s.
In 2007 and 2008, a series of naval events between the United States and Iran took place in the Strait of Hormuz.
Iran asserted that if it were attacked by the U.S. the strait would be sealed off to damage the world's oil markets.
The U.S. responded by claiming that any closure of the strait would be treated as an act of war. This further increased tensions and showed its importance worldwide.

Despite these current and past threats, it has never actually been closed off and many experts claim that it will not be.
Iran's economy depends on the shipment of oil through the strait.
Any closure of the strait would likely cause war between Iran and the U.S. and generate new tensions between Iran and Countries like India and China.

Several different industries work together to satisfy global oil demand, ranging from companies that explore and drill for oil to retailers to sell gas to motorists.
Companies that pump oil out of the ground around the world, transport oil in ships from producers to consumers and indemnify the oil trade against in-transit losses would face the most immediate need to adapt to attacks on shipping in the Strait of Hormuz.

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