Bristi Dey
Where is it?
The Strait is bordered by Iran to the north and Oman and the UAE to the south. It’s the only passage out of the Gulf to the rest of the ocean. Though previously no one particular country owned it, now Iran has voluntarily enforced its military there to stop the global passage.
World's critical oil chokepoint
The strategic location of the Strait of Hormuz has made it the crucial space for ship passage. Nearly 20–30% of global oil trade passes through this narrow stretch of water.
Can cause a ripple effect in world's market
It is not just the global oil distribution that will be affected if this strait is closed or disrupted. It has a worldwide impact on inflation, transport costs, stock markets, and everyday fuel prices.
Is it closed?
The strait is not officially closed, but heavy military presence have stopped ships from safe passage. As of now Iran has said the strait is open only to certain countries and ships. With the ongoing tension only collaborative agreements will lead to a complete safe passage through the strait.