Why the Strait of Hormuz matters so much in the Iran war in International Shipping News 22/03/2026 Iran has effectively blocked the Strait of Hormuz, one of the world’s busiest oil shipping channels, since the US and Israel attacked the country on 28 February. About 20% of the world’s oil and liquefied natural gas (LNG) usually passes through the strait and the war has sent global fuel prices soaring. Bounded to the north by Iran and to the south by Oman and the United Arab Emirates (UAE), the corridor – only about 50km (31 miles) wide at its entrance and exit, and about 33km wide at its narrowest point – connects the Gulf with the Arabian Sea. The strait is deep enough for the world’s biggest crude oil tankers, and is used by major Middle Eastern oil and LNG producers, as well as their customers. In 2025, about 20 million barrels of oil and oil products passed through the Strait of Hormuz per day, according to estimates from the US Energy Information Administration (EIA). That is nearly $600bn (£447bn) worth of energy trade per year. The oil comes not only from Iran but other Gulf states such as Iraq, Kuwait, Qatar, Saudi Arabia and the UAE. About 20% of global LNG is also shipped through the strait, mostly from Qatar. In 2024, it exported about 9.3 billion cubic feet per day (Bcf/d) of LNG through the strait, and the UAE about 0.7 Bcf/d, according to the US government. LNG is gas turned into liquid, which takes up 600 times less space for transport, which is then turned back into gas at its destination to be used for heating, cooking and power. Hormuz is also a crucial route for exports of fertiliser from the Middle East, where natural gas is used heavily in the production process. About one-third of the world’s fertiliser trade normally passes through the strait. And going in the opposite direction, the strait is a vital channel for imports to the Middle East, including food, medicines and technological supplies. What is the impact of closing the strait? About 3,000 ships usually sail through the strait each month but this has dramatically decreased recently, with Iran threatening to attack tankers and other ships. At least 21 vessels have been hit or targeted, or have reported attacks, since the start of the war, according to an AFP news agency tally on 18 March. According to one UAE estimate, quoted by AFP, “more than 18 merchant ships of various nationalities have been hit by projectiles, missiles, drone boats and sea mines”. The same estimate said that at least eight people had been killed, with four still missing. “You can be attacked, and you can’t get insurance or it is extremely expensive, so you have to wait until the security situation is better,” Arne Lohmann Rasmussen, chief analyst at Global Risk Management, a provider of energy market insights, told CBS News, the BBC’s US partner. “While there is no physical blockade, threats from the Iranians, plus drone and missile attacks, mean tankers are not going through the strait.” Energy prices remain well above levels before the conflict. Crude oil has risen to about $100 a barrel, according to the Reuters news agency – up almost 70% this year and nearly 50% from a year ago. Gulf countries, including Iran, rely heavily on energy exports for their income. A blockade of the strait will also hit Asia hard, with China alone estimated to buy around 90% of the oil that Iran exports to the global market. Because China uses that oil to make products it then exports to other countries,