According to data, shipping traffic through this route has fallen by approximately 97% since the conflict began on February 28. This has led to a sharp surge in energy prices. Stock markets around the world are experiencing a sharp decline, driven by the disruption of Oil and Gas supplies through the Strait of Hormuz. In response to US and Israeli attacks, Iran has issued warnings to ships transiting the region, and some ships have been attacked. This has led to a complete halt in supplies. This has resulted in a sharp rise in crude oil and gas prices, causing stock markets to crash. This raises questions about why it is so easy for Iran to block this route despite the presence of highly modern US and Israeli armies in the region.
Why Iran blocked Strait of Hormuz ?
Iran’s decision to close the Strait of Hormuz isn’t a one-off decision. Closing the Strait of Hormuz has always been part of Iran’s retaliatory policies in the event of conflict. In 2011, an Iranian military commander said that closing the route was “as easy as drinking a glass of water”. However, experts have always considered this Iran’s last resort, as it could impact Iran’s energy exports and provoke a strong reaction from its rival nations. Even in the ongoing conflict, Iran has sought to close this route to pressure the US, as it would impact global oil and gas prices and pressure the US to stop the war.
What favours Iran to close this route ?
The geographical location of this area favors Iran. The Strait of Hormuz is only about 95 kilometers wide at its widest point, and only about 35 kilometers at its narrowest point. In the navigable portion, the width of the passage can sometimes be less than 10 kilometers. Meanwhile, ships carrying oil and gas are themselves extremely vulnerable. They travel at extremely slow speeds, and their structures are inadequate to protect them from attack. Simply put, they are vulnerable targets in times of war, where the damage can be significant. The mere threat of war is enough to halt traffic.
Iran possesses a large number of drones and missiles capable of targeting these ships at short ranges, as well as small fast attack boats and mini-submarines. Iran also has the capability to inflict significant damage on ships through sea mines.
Why is it so difficult to secure this sea route ?
Securing this route is extremely difficult due to the high risks and high costs. According to one estimate, Iran could produce thousands of new drones every month. Keeping the entire route open would require significant assets and financial investment from the US and its allies. And even this route is not guaranteed to be 100% secure.
Recently, a senior US military official had made it clear that it is not possible to provide complete security to the Strait of Hormuz as long as the campaign against Iran continues.
Iran possesses a large number of drones, as well as small fast attack boats which can inflict significant damage on ships. According to experts, for some time the US Navy can escort oil tankers under the protection of destroyers, but doing so for months would be very expensive and difficult.
Why Strait of Homruz is so important for the World ?
Normally, approximately 20% of the World’s Oil and LNG supplies pass through this route. Data shows that shipping traffic through this route has fallen by approximately 97% since the conflict began on February 28th. This has led to a sharp rise in energy prices. Approximately 33% of the world’s fertilizers (sulfur and ammonia) pass through this route. This crisis is expected to increase inflation and adversely affect agriculture.
What America and Rest of the World is planning ?
US President Donald Trump has said that America can provide security to ensure safe passage of Oil tankers through this route, he has also ordered shipping companies to provide insurance and guarantees so that the ships can continue to sail. It is possible that the US may escort a few tankers through the Strait of Hormuz and attempt to provide full security in the future. However, many experts believe that a full security operation will only be possible after the conflict ends.
Other countries are also negotiating on their own. India is currently in direct supply discussions with Iran, and has achieved some success.
Is there any alternatives Waterways other than Strait of Hormuz ?
Oil and gas producing countries in the region have attempted to reduce their dependence on this waterway. The UAE and Saudi Arabia have attempted to create export alternatives through oil pipelines. These supply oil through the Red Sea and are an alternative to the Strait of Hormuz. However, these are not operating at full capacity. The 2019 attack on a Saudi Arabian pipeline also demonstrated that even these alternatives are not completely secure.


