{"id":483968,"date":"2026-02-22T14:44:10","date_gmt":"2026-02-22T14:44:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/483968\/"},"modified":"2026-02-22T14:44:10","modified_gmt":"2026-02-22T14:44:10","slug":"iran-us-tensions-what-would-blocking-strait-of-hormuz-mean-for-oil-lng-explainer-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/483968\/","title":{"rendered":"Iran-US tensions: What would blocking Strait of Hormuz mean for oil, LNG? | Explainer News"},"content":{"rendered":"

Whenever tensions rise between Iran and the United States, one narrow waterway moves to the centre of global attention \u2013 the Strait of Hormuz.<\/p>\n

The world\u2019s largest warship, the nuclear-powered aircraft carrier USS Gerald R Ford, is heading to the Gulf, joining one of the largest US military build-ups<\/a> in the region since the 2003 invasion of Iraq. This time, Iran is in Washington\u2019s crosshairs.<\/p>\n

Recommended Stories list of 3 itemsend of list<\/p>\n

This month, Tehran signalled how it might respond to an attack when it announced the temporary closure of sections of the Strait of Hormuz, the narrow gateway linking the Gulf to open seas.<\/p>\n

Iranian authorities carried out live-fire military drills in the corridor, through which about 20 percent of global oil supplies are shipped.<\/p>\n

The move marked a rare suspension of activity in parts of the strait. It served as a pointed warning about the economic consequences if Washington proceeds with its threats to strike Iran, highlighting how quickly a regional confrontation could spill into global markets.<\/p>\n

Where is the Strait of Hormuz?<\/p>\n

The Strait of Hormuz is the world\u2019s most critical oil chokepoint.<\/p>\n

The curved waterway lies between Iran to the north and Oman and the United Arab Emirates to the south. It is roughly 50km (31 miles) wide at its entrance and exit and narrows to about 33km (20 miles) at its tightest point. It forms the only maritime link between the Gulf and the Arabian Sea.<\/p>\n

Despite its narrow width, the channel accommodates the world\u2019s largest crude carriers. Major Middle Eastern oil and gas exporters rely on it to move supplies to international markets while importing nations depend on its uninterrupted operation.<\/p>\n

\"INTERACTIVE<\/p>\n

How much oil and gas pass through the strait?<\/p>\n

According to the US Energy Information Administration<\/a> (EIA), about 20 million barrels of oil transited through the Strait of Hormuz each day in 2024. That equates to nearly $500bn in annual energy trade, underlining the waterway\u2019s central role in the global economy.<\/p>\n

The crude passing through the strait originates from Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the UAE.<\/p>\n

Any prolonged disruption would rattle producers and the economies that depend on their exports.<\/p>\n

The strait also plays a critical role in the liquefied natural gas (LNG) trade. In 2024, roughly a fifth of global LNG shipments moved through the corridor with Qatar accounting for the vast majority of those volumes, according to EIA data<\/a>.<\/p>\n

Where does it all go?<\/p>\n

The strait handles LNG flows in both directions. Kuwait and the UAE import supplies sourced outside the Gulf, including shipments from the US and West Africa.<\/p>\n

The EIA estimated that in 2024, 84 percent of crude oil and condensate shipments transiting the strait headed to Asian markets. A similar pattern appears in the gas trade with 83 percent of LNG volumes moving through the Strait of Hormuz destined for Asia.<\/p>\n

China, India, Japan and South Korea accounted for a combined 69 percent intake of all crude oil and condensate flows through the strait last year. Their factories, transport networks and power grids depend on uninterrupted Gulf energy.<\/p>\n

\"ThisA rocket is fired during a military exercise by Iran\u2019s Islamic Revolutionary Guard Corps and navy in the Strait of Hormuz on February 17, 2026 [Handout\/SepahNews via AFP]What are Iran\u2019s options?<\/p>\n

Under international law, states may exercise sovereignty up to 12 nautical miles (22km) from their coastlines. At its narrowest stretch, the Strait of Hormuz and its designated shipping lanes fall entirely within the territorial waters of Iran and Oman.<\/p>\n

That legal reality gives Tehran geographic leverage. About 3,000 vessels transit the strait each month. If Iran tried to obstruct traffic, one of the most effective tactics would involve deploying naval mines using fast attack boats and submarines.<\/p>\n

Tehran\u2019s fleet includes fast boats equipped with antiship missiles, alongside surface vessels, semisubmersible craft and submarines designed for asymmetric warfare.<\/p>\n

Iran\u2019s parliament<\/a> last year approved a motion to close the Strait of Hormuz. Any final decision rests with Supreme Leader Ali Khamenei.<\/p>\n

Regional dynamics could further complicate the situation.<\/p>\n

In Yemen, the Houthi group, which maintains close ties with Iran, could again try to disrupt traffic through the Bab al-Mandab Strait, another vital maritime chokepoint linking the Red Sea to global trade routes. Shipping through that corridor suffered significant disruptions after Israel\u2019s genocidal war on Gaza began in October 2023.<\/p>\n

The Houthis, who control northwestern Yemen, including the capital, Sanaa, recently organised<\/a> a mass rally under the slogan Steadfast and Ready for the Next Round, signalling readiness for a potential confrontation with domestic or foreign adversaries.<\/p>\n

Any coordinated pressure on the Strait of Hormuz and Bab al-Mandab Strait would amplify risks for global shipping, energy markets and international trade.<\/p>\n

Impact on global oil prices<\/p>\n

Colby Connelly, head of Middle East content at Energy Intelligence, told Al Jazeera from the UAE that a full or partial closure of the Strait of Hormuz would have a \u201cmajor impact on oil prices in the near term\u201d, depending on how long the strait remains contested.<\/p>\n

\u201cThere are no other major sources of supply that can make up for what comes from the Gulf, especially given the consideration that around 70 percent of OPEC+ spare production capacity sits in the Gulf,\u201d Connelly said, referring to the group of oil-producing countries that collectively sets production volumes.<\/p>\n

Saudi Arabia relies heavily on the strait to export its crude, shipping roughly 5.5 million barrels per day through the corridor \u2013 more than any other country in the region, according to EIA data.<\/p>\n

Iran\u2019s oil exports, about 90 percent of which go to China, averaged roughly 1.7 million barrels per day in the first half of 2025, according to the EIA.<\/p>\n

\u201cSaudi Arabia and the UAE both have limited pipeline capacity that can allow exports to continue via the Red Sea coast and Fujairah,\u201d a UAE port on the Gulf of Oman, Connelly warned.<\/p>\n

While some Gulf producers hold substantial volumes in overseas storage that could cushion supply shocks, Connelly noted that buffers may prove limited in the face of serious disruptions. He cautioned: \u201cOil prices have been highly reactive to geopolitical tensions in recent weeks, and as a result, prices could spike to well over $100 per barrel if there were to be a major disruption.\u201d<\/p>\n

\"TheThe US Navy\u2019s Nimitz-class aircraft carrier USS Abraham Lincoln sails the Arabian Sea on February 6, 2026 [Jesse Monford\/Reuters]Impact on global economy<\/p>\n

Any disruption to energy flows through Hormuz would drive up fuel and factory costs, especially as China leans on manufacturing and exports to sustain its economic growth.<\/p>\n

Higher energy prices would raise production expenses with companies likely passing those costs along supply chains and to consumers.<\/p>\n

\u201cThat\u2019s going to have severe inflationary effects for the global economy,\u201d warned Samuel Ramani, an associate fellow at the Royal United Services Institute in the United Kingdom.<\/p>\n

The consequences would extend beyond China. Several major Asian economies depend heavily on shipments transiting through the strait.<\/p>\n

Almost half of India\u2019s crude oil imports and about 60 percent of its natural gas supplies move through the Strait of Hormuz. South Korea sources roughly 60 percent of its crude via the same route while Japan relies on it for close to three-quarters of its oil imports.<\/p>\n

\u201cFor the Gulf countries in particular, it\u2019s going to cause a lot of disruption,\u201d Ramani told Al Jazeera. \u201cI was in the UAE recently, and investors in Dubai are concerned about what that would mean for the tourism and finance sector. This may cause some investment hiccups in some of the Vision 2030 projects in Saudi Arabia.\u201d<\/p>\n

\u201cThere\u2019s many, many layers of concern here, not just exports and prices but also broader macroeconomic and microeconomic consequences. So we should be looking at this as a very serious adverse financial development,\u201d Ramani added.<\/p>\n","protected":false},"excerpt":{"rendered":"Whenever tensions rise between Iran and the United States, one narrow waterway moves to the centre of global…\n","protected":false},"author":2,"featured_media":483969,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[23,3995,1204,4868,144,1127,1872,11501,2402,3139,801,14945,3471,133,129,3,45063,15581,15275,21,19,22,20,25,24],"class_list":{"0":"post-483968","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-america","9":"tag-asia","10":"tag-asia-pacific","11":"tag-business-and-economy","12":"tag-china","13":"tag-conflict","14":"tag-energy","15":"tag-explainer","16":"tag-inflation","17":"tag-international-trade","18":"tag-iran","19":"tag-iraq","20":"tag-japan","21":"tag-kuwait","22":"tag-middle-east","23":"tag-news","24":"tag-oil-and-gas","25":"tag-oman","26":"tag-qatar","27":"tag-united-states","28":"tag-united-states-of-america","29":"tag-unitedstates","30":"tag-unitedstatesofamerica","31":"tag-us","32":"tag-usa"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/483968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=483968"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/483968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/483969"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=483968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=483968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=483968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}