What is the Strait of Hormuz and how will it affect the global economy?

Iran warned that it might try to close Strait of Hormuz It will transport US retaliatory traffic to join Israeli strikes at Iran’s nuclear facility.

Iranian government It contemplates retaliatory actions, including the potential closure of the Strait of Hormuz, a key transport lane for global energy supply. The Iranian regime was able to pursue its targets using mines, ship missiles, or other means of obstructing or destroying transport.

Iran’s state media recently reported on such a plan approved by the country’s parliament, but emphasized that permission from the country’s highest security council is required.

Approximately 20% of global demand for petroleum products passes through the Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is less than 30 miles at its narrowest point, making it more difficult for the ship to pass through the passageway if Iran tries to close it.

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In 2024, the Energy Information Agency (EIA) within the US Department of Energy announced that Oil flow A similar level was reported in the first quarter of 2025, at an average of around 2,000 barrels per day through the Strait.

“The first quarter of 2025 accounted for more than a quarter of the global Seaborne Oil trade and roughly a fifth of the global. Oil and petroleum Product consumption,” the EIA wrote.

“In addition, about a fifth of the world’s liquefied natural gas trade passed through the Strait of Hormuz in 2024, mainly from Qatar.”

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The EIA estimated that 84% of the crude oil and condensate, and 83% of the liquefied natural gas that traveled through the Strait of Hormuz, went to the Asian market in 2024.

“China, India, Japan and South Korea are the biggest destinations for moving crude oil across the straits from Hormuz to Asia, accounting for 69% of all Hormuz crude and condensate streams in 2024. They say these markets are most likely to be affected by Hormuz’s supply disruption.

The EIA noted that the US imported approximately 5 million barrels of crude oil and condensate from the Persian Gulf countries through the Strait of Hormuz, which accounted for around 7% of US oil and condensate imports and 2% of US oil liquid consumption.

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The largest exporters of crude and condensation passing through the Strait of Hormuz are Saudi Arabia (5.3 million barrels per day), Iraq (3.2 million) and the United Arab Emirates (1.8 million). Iran ranked fourth in the first quarter of 2025 with around 1.5 million barrels per day.

Secretary of State Marco Rubio has appeared on Fox News.”Sunday morning future“And he told host Maria Bartiromo that China and other countries should discourage Iran from trying to close the Strait of Hormuz.

China is the main importer According to EIA data, crude oil was shipped in the first quarter of 2025, with 5.4 million barrels per day and passed through the strait.

“We encourage Beijing’s Chinese government to call them about it. “If they do that, it would be another terrible mistake. If they do that, it’s economic suicide for them. And we will maintain the option to deal with it.”

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“Other countries should be seeing that too,” Rubio added, “it will make other economies much worse than ours.

He also said the Iranian government is “I’m going to say what they need to say. These are things that need to happen, for their own internal politics and so on.”

“We had three purposes. We surprised these three objectives with decisive force. That’s the point of this mission, and that’s what we achieved,” Rubio said of the US strike. Fordow, Nathanz, Isfahan.

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“What happens next depends on what they want to do. They want to negotiate, we’re ready to negotiate. They want to do cute things, do dangerous things, we have a catastrophic response,” Rubio said.