The Strait of Hormuz is a narrow sea passage between Iran and Oman that connects the Persian Gulf to the Arabian Sea. It is the world’s most important oil chokepoint: about 20 million barrels of oil a day, roughly 20% of global oil consumption, passed through it in 2024, along with about a fifth of the world’s LNG trade. Any disruption there moves oil prices worldwide, and India is among the countries most exposed.
Saudi Arabia (the largest, about 38% of the crude flows in 2024), Iraq, the UAE, Kuwait, Iran and Qatar all ship oil or gas through the strait.
According to the EIA, 84% of the crude and 83% of the LNG moving through Hormuz in 2024 went to Asia. China, India, Japan and South Korea together took 69% of the crude flows. Europe and the US take a much smaller share, but they still feel the effect through global prices.
| Pipeline | Route | Capacity |
|---|---|---|
| East-West (Petroline) | Saudi Arabia to the Red Sea port of Yanbu | 5 million b/d (briefly expanded to 7 million in 2019) |
| Abu Dhabi Crude Oil Pipeline | UAE to Fujairah, outside the strait | 1.8 million b/d |
| Goreh–Jask | Iran to the Gulf of Oman | About 0.3 million b/d |
The EIA estimates only about 2.6 million b/d of this capacity is unused and available in a disruption. That’s a small fraction of normal flows.
In early 2026, conflict in the region disrupted shipping through the strait. The EIA reported that Gulf producers had shut in about 7.5 million barrels a day of output by March, and Brent crude averaged about $103 a barrel that month. Traffic later resumed, but the EIA’s September 2026 outlook still assumed some export constraints through the end of 2026, with Middle East output below pre-conflict levels until the second quarter of 2027. For how prices reacted, see why crude oil prices rise or fall.
The Persian Gulf has only one sea exit, and Hormuz is it. The only alternatives are the pipelines above, which can carry only a small part of normal volumes.
It lies between Iran to the north and Oman (the Musandam peninsula) to the south. International shipping uses designated lanes through it.
Sources: EIA: Strait of Hormuz remains critical oil chokepoint, EIA (Apr 2026), EIA Short-Term Energy Outlook, ISPRL, PPAC.