Strait of Hormuz: A Critical Oil Passage Amidst Rising Tensions

The ongoing conflict between Israel and Iran is heightening fears of a potential closure of the Strait of Hormuz, a crucial oil transit passage due to its significant daily crude oil flow. Recent US military strikes in Iran have sparked questions regarding potential retaliation and the resulting global economic implications.

Straddling the Persian Gulf and the Gulf of Oman, the Strait of Hormuz is only 33 kilometers wide at its narrowest, yet it accommodates major crude oil tankers. A blockade by Iran could send oil prices soaring, as highlighted by oil analyst Homayoun Falakshahi, potentially disrupting the global economy, despite the assumption it wouldn't be prolonged.

While Asia is set to be the most affected due to its high dependency on Gulf oil, any closure of the strait would challenge Iran's own economic interests and disrupt the oil supply to allies. Analysts anticipate that the US Navy, possibly supported by international forces, would ensure the strait remains operational.

(With inputs from agencies.)