Iran Blocks Strait of Hormuz: Global Oil Supply at Risk

Iran has effectively blocked the Strait of Hormuz, one of the busiest oil shipping channels in the world, since the U.S. and Israel launched an attack on February 28. This strait sees about 20% of the world's oil and liquefied natural gas passing through it. With global fuel prices soaring, the situation has become critical. The Strait of Hormuz is a narrow corridor, just 50 kilometers wide at its entrance, connecting the Gulf to the Arabian Sea. In 2025, an estimated 20 million barrels of oil passed through daily, translating to nearly $600 billion in energy trade annually. The strait is not just vital for oil; it also handles significant LNG shipments, mostly from Qatar, and is a crucial route for fertilizer exports from the Middle East. Currently, Iran's threats of attacks on tankers have drastically reduced shipping traffic. In just a few weeks, there have been at least 24 attacks on commercial vessels. The bottom line? The ongoing conflict in this region could disrupt global energy supplies, affecting prices and availability right where you live.