STRAIT OF HORMUZ

NEWS: One of the most important energy chokepoints in the world, through which a huge portion of global oil and gas is transported

Strait of Hormuz

• The Strait of Hormuz is a narrow and strategic sea passage.
• It connects oil and LNG production regions in the Middle East to global markets.
• It links the Persian Gulf to the Arabian Sea and Indian Ocean.
• Located between: Iran (north), Oman & UAE (south)
• Connects: Persian Gulf → Arabian Sea → Indian Ocean

Volume of Energy Transported

• Around 20% of global LNG (Liquefied Natural Gas) trade passes through the strait.
• Oil & petroleum products: ~20.3 million barrels per day
• LNG: ~290 million cubic meters per day
• Around 80% of LNG shipments through the strait go to Asia
• About 20% goes to Europe

Strategic Importance

• Strategic maritime chokepoint–> Any conflict, blockade, or tension here can: Disrupt global oil supply, increase oil prices
• India imports a large share of oil from the Middle East->disruption in the Strait can affect: Energy security, Inflation, Trade balance
• Located in a conflict-prone West Asia region