STRAIT OF HORMUZ
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The Strait of Hormuz is a strategically significant and narrow maritime passage situated between Iran and Oman, serving as a link between the Persian Gulf, the Gulf of Oman, and the Arabian Sea. The U.S. Energy Information Administration (EIA) has labeled it as the world’s most vital oil transit chokepoint, through which nearly 20% of global liquid petroleum fuels and a substantial portion of LNG trade pass. In May, more than 45% of India’s crude oil imports were estimated to have transited through this strait. Given that India is the third-largest consumer of crude oil globally and imports over 85% of its oil needs, the strait plays a crucial role in its energy security.
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Data from the commodity analytics firm Kpler indicates that, as of June, India has been importing over 2.2 million barrels per day (bpd) of crude oil from Russia, which constitutes more than 41% of its total oil imports.
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While oil imports from the U.S. have shown a steady rise, supplies from West Asian nations such as Iraq, Saudi Arabia, the UAE, and Kuwait have remained relatively consistent. Many of these shipments were likely planned prior to the recent escalation in tensions between Israel and Iran, and therefore, may not reflect the impact of the current geopolitical developments.
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Over the past two to three years, India has notably adjusted its oil import strategy. Russia has emerged as India’s top crude supplier, overtaking traditional exporters from West Asia. Importantly, Russian oil bypasses the Strait of Hormuz, as it is mainly transported via alternative sea routes like the Suez Canal and Red Sea, and sometimes through the Cape of Good Hope or Pacific Ocean routes.
- The Strait of Hormuz is commonly considered the most critical maritime chokepoint in the world. It links the Persian Gulf with the Gulf of Oman and the Indian Ocean, serving as a major export corridor for regional oil producers.
- At its narrowest point, it measures only about 21 nautical miles (38 km) across. Under typical conditions, nearly 21 million barrels of oil—around one-fifth of global consumption—flow through it daily.
- Alongside crude oil, substantial quantities of liquefied natural gas from Qatar and the UAE are transported via this passage.
- A significant share, close to 80%, is destined for Asian markets, making countries like India, China, Japan, and South Korea heavily reliant on this route.
- Apart from Hormuz, international trade depends on a few other strategically vital maritime passages, including the Strait of Malacca, Bab el-Mandeb Strait, Suez Canal, and Panama Canal.
- The Strait of Malacca lies between the Malay Peninsula and Indonesia’s Sumatra island and represents the shortest maritime route connecting the Indian Ocean with the South China Sea. This makes it indispensable for trade flows linking West Asia, Africa, and East Asia.
- The Bab el-Mandeb Strait is positioned between the Arabian Peninsula and the Horn of Africa.
- It serves as the southern entrance to the Red Sea, a necessary transit point for vessels heading toward the Suez Canal and onward to the Mediterranean, thereby forming a crucial segment of Asia–Europe trade routes.
- The Suez Canal, a man-made channel across Egypt, connects the Red Sea to the Mediterranean Sea, significantly reducing travel time by eliminating the need to circumnavigate Africa.
- Further west, the Panama Canal cuts through the Isthmus of Panama, linking the Atlantic and Pacific Oceans. This strategic shortcut facilitates trade between Asia, the Americas, and Europe, removing the necessity of sailing around South America
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India’s current oil procurement approach already demonstrates a diversified and risk-mitigated strategy, especially in light of uncertainties in West Asian oil routes, with Russian crude now making up the largest share of India’s import basket.
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After recent U.S. air strikes targeting Iranian nuclear sites, Iran’s parliament passed a resolution on Sunday advocating the closure of the Strait of Hormuz, a vital corridor for global oil transportation. The final decision on this move now lies with Iran’s Supreme National Security Council.
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Although Iran has repeatedly issued threats in the past to shut the strait, it has never acted on them. Even in the present context, industry analysts consider the likelihood of an actual blockade to be low. Nevertheless, the increased risk perception surrounding the potential closure is expected to trigger global alarm, including in India, by raising concerns over the security of oil and gas supplies and potentially driving up global energy prices.
- The Israel-Iran conflict poses a significant threat to global oil and gas flows due to the geopolitical sensitivity and strategic location of the region. At the heart of this issue lies the Strait of Hormuz—a narrow but crucial maritime passage through which nearly 20% of the world’s petroleum and a substantial share of liquefied natural gas (LNG) are transported.
- Iran borders this strait and has, over the years, repeatedly threatened to block it during periods of heightened tension, including in response to military actions or sanctions.
- When hostilities between Israel and Iran escalate—such as through air strikes, proxy conflicts, or cyber warfare—it increases the likelihood of retaliation from Iran that could involve disrupting maritime traffic in the Strait of Hormuz.
- Even if Iran does not fully close the strait, the mere threat or perception of such an action is enough to cause volatility in global energy markets. Tanker insurance rates rise, shipping routes are reconsidered, and countries heavily dependent on oil imports, like India, become increasingly vulnerable to supply disruptions and price shocks.
- Furthermore, any military conflict in this region risks damaging key infrastructure such as refineries, pipelines, or export terminals in the broader West Asian region.
- This would constrain oil production and distribution, affecting both the availability and price of crude oil and gas worldwide. Global markets respond quickly to these risks, often resulting in immediate spikes in prices due to concerns over supply security.
- In summary, the Israel-Iran conflict amplifies the risk to global oil and gas flows by potentially destabilizing a region that is central to global energy supply chains. It heightens fears of supply disruptions, increases market speculation, and threatens the economic stability of energy-importing countries, making it a matter of both geopolitical and economic concern
The flow of vessels through major international chokepoints is largely regulated by the United Nations Convention on the Law of the Sea. According to its provisions, straits that are used for global navigation fall under the concept of “transit passage,” which permits ships and aircraft from all countries to move through them freely, continuously, and without interference.
At the same time, coastal states bordering these straits are allowed to introduce regulations related to safety or environmental protection. However, they are not permitted to block passage or apply discriminatory restrictions on specific vessels. While this freedom of navigation is widely accepted in international law, its practical implementation often depends on the naval capabilities of states and the level of cooperation among them
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For Prelims: Strait of Hormuz, Persian Gulf, Energy Information Administration (EIA), liquefied natural gas (LNG)
For Mains: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests.
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Previous Year Questions
1.Which one of the following straits is nearest to the International Date Line? (UPSC CSE 2008) (a) Malacca Strait (b) Bering Strait (c) Strait of Florida (d) Strait of Gibraltar Answer (b) The International Date Line (IDL) roughly follows the 180° longitude, which lies in the Pacific Ocean, deviating slightly to accommodate international boundaries. The Bering Strait lies between Russia and Alaska, and it is very close to the 180° meridian, making it the closest strait to the International Date Line. Here's why the other options are incorrect:
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