What if Iran closes Strait of Hormuz?

The Israel-Hamas war has raised the concerns of a wider regional conflict which could embroil Iran and other regional factions. Analysts and market observers say the conflict could prompt the United States to tighten sanctions on Iran, which may spur Tehran to take retaliatory action against ships in the Strait in Hormuz.

The Marshall Islands registry, one of the world's top shipping flags, last week flagged that vessels with links to Israel or the United States may face a heightened threat of attack within Israeli territorial waters, the Mideast Gulf, Strait of Hormuz, Gulf of Oman and Red Sea areas.

The strait lies between Oman and Iran. It links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. It is 21 miles (33 km) wide at its narrowest point, with the shipping lane just two miles (three km) wide in either direction.

The United Arab Emirates and Saudi Arabia have sought to find other routes to bypass the Strait, including building more oil pipelines.

About a fifth of the volume of the world's total oil consumption passes through the Strait on a daily basis. An average of 20.5 million barrels per day (bpd) of crude oil, condensate and oil products passed through Hormuz in January-September 2023, data from analytics firm Vortexa showed.

OPEC members Saudi Arabia, Iran, the UAE, Kuwait and Iraq export most of their crude via the Strait.

Qatar, the world's biggest liquefied natural gas (LNG) exporter, sends almost all of its LNG through the Strait.