The Strait of Hormuz functions as the world’s most critical oil chokepoint—a narrow waterway (about 21 miles wide at its narrowest, with shipping lanes roughly 2 miles each way) connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. It serves as the primary maritime exit route for massive oil and liquefied natural gas (LNG) exports from major producers in the region, including Saudi Arabia, Iraq, the UAE, Kuwait, Qatar, and Iran. Tankers must pass through it to reach global markets, making any disruption (e.g., conflict, mines, attacks, or blockades) capable of severely restricting supply and spiking prices worldwide.
Typically, around 20% of the world’s daily oil trade (or global petroleum liquids consumption) passes through it. Recent data (from the U.S. Energy Information Administration for 2024–early 2025) shows flows averaging about 20–21 million barrels per day (b/d), equivalent to roughly 20% of global oil consumption and about 25% of total seaborne (maritime) oil trade. Some estimates put seaborne share closer to 26–29% in certain years, but the ~20% figure for overall global oil is the most consistently cited benchmark by sources like the EIA and IEA.
(For context: Global oil consumption is over 100 million b/d, so 20% equates to a huge volume that, if blocked, creates major supply shocks—as we’re seeing right now in 2026.)