7/14/2026•Business > Energy
- •The Strait of Hormuz is a key global energy chokepoint, with about 20% of the world’s oil and LNG usually passing through it.
- •The narrow waterway links the Persian Gulf to the Arabian Sea, making shipping vulnerable to missiles, drones, mines, and fast attack craft.
- •Iran has used threats to close the strait before as leverage during disputes with Western powers.
- •Market fears center on supply disruption, higher freight costs, rising insurance premiums, and possible price spikes in oil and fuel.
- •Gulf exporters such as Saudi Arabia and the UAE have some alternative routes, but they cannot fully replace Hormuz’s capacity.
