Home Industry Energy Strait of Hormuz: The world’s most important oil artery About a fifth of the volume of the world’s total oil consumption passes through the Strait on a daily basis by Reuters October 23, 2023 The Israel crisis has raised the spectre of a wider regional conflict which could embroil multiple countries and other regional factions. Analysts and market observers say the conflict could prompt the US 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 US may face a heightened threat within Israeli territorial waters, the Arabian Gulf, Strait of Hormuz, Gulf of Oman and Red Sea areas. Below are details about the Strait: What is the Strait of Hormuz? 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. Importance 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 such as Saudi Arabia, 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. Some 80 million metric tons, or 20 per cent of global LNG flows go through this sea passage every year, Vortexa said. “If the conflict broadens to include the closure of the Strait of Hormuz —the world’s busiest oil-shipping channel— it would shut down the region’s oil trade, supercharging oil prices,” JP Morgan said in a note this week. US sanctions The US has imposed sanctions on Iran aimed at halting its oil exports. The US Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area. Rising tensions The crisis and violence since October 7 has increased the risk of a wider conflict. Tags LNG natural gas oil exports Qatar Saudi Arabia Strait of Hormuz UAE You might also like UAE leaders mourn passing of Sheikh Tahnoun bin Mohammed Saudi petrochemical group SABIC reports 62% plunge in profits UAE announces remote work for public sector workers, MoHRE advises flexible work for private sector The economy of language: Saudi Arabia’s young workers pivot to English