The Inquiry25 Jun 2025

How crucial is the Strait of Hormuz to global oil supplies?

The Strait of Hormuz remains one of the most important energy corridors in the world. It is the only sea route from the Persian Gulf to the open ocean, it serves as the primary maritime route for oil exports from the Gulf. Any disruption to traffic through the strait would have implications for oil markets and regional stability.

While some Gulf states have developed pipelines to bypass the strait, the volume of oil transported by sea is far greater, and for many countries, including key Gulf exporters, the waterway is essential to maintaining trade. China is the largest buyer of oil that travels through the strait, making it particularly exposed to any disruption.

Iran itself relies on the Strait of Hormuz to sell its oil and any blockage of the route would likely damage Iran’s own economy and could strain relationships with regional neighbours.

Despite past threats to close the Strait of Hormuz, the waterway has remained open, including during the tanker wars of the 1980s, but any disruption could have a big impact on global oil supplies.

Picture Credit: Morteza Nikoubazl/NurPhoto via Getty Images

Contributors: Camille Lons, Deputy Head of the Paris office of the Council on Foreign relations Elisabeth Braw, Senior fellow with the Atlantic Council’s Transatlantic Security Initiative in the Scowcroft Center for Strategy and Security

Jacob P. Larsen, BIMCO’s Chief Safety & Security Officer

Petter Haugen, Partner, Equity Research Shipping, ABG Sundal Collier, Nordic Investment Bank

Presenter Charmaine Cozier Producer Louise Clarke Researcher Maeve Schaffer Editor Tara McDermott Technical Producer: Gareth Jones Production Coordinator - Tammy Snow

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