Iran-US tensions: What would blocking Strait of Hormuz mean for oil, LNG?
Al Jazeera
February 22, 2026
AI-Generated Deep Dive Summary
As tensions between Iran and the United States escalate, the Strait of Hormuz has emerged as a critical flashpoint with significant global economic implications. This narrow waterway, through which nearly $500 billion in oil and gas flows annually, serves as a vital link between the Persian Gulf and international markets. Recent Iranian military exercises, including live-fire drills and temporary closures of parts of the strait, signal Tehran’s willingness to disrupt energy supplies if U.S. threats materialize.
The Strait of Hormuz is a strategic chokepoint located between Iran and the UAE/Oman, just 31 miles wide at its entrance. Despite its narrow dimensions, it accommodates the world’s largest oil tankers, making it indispensable for Middle Eastern exporters like Iran, Iraq, and Saudi Arabia. About 20% of global oil shipments pass through here daily, with a significant portion destined for Asian markets such as China, India, and Japan.
Iran’s actions in the strait are not just military posturing; they carry substantial economic weight. A prolonged disruption would ripple through global energy markets, affecting both producers and importers. LNG trade is also heavily reliant on this corridor, with 84% of shipments heading to Asia. Countries like China and South Korea depend on uninterrupted flows from the Gulf, making them vulnerable to any conflict that disrupts the strait.
The legal dimension adds another layer of complexity. Under international law, Iran has sovereignty over its territorial waters up to 12 nautical miles from its coast, encompassing parts of the strait. This gives Tehran strategic leverage, as it could deploy naval mines or block traffic with its fast-attack boats, potentially halting one of the world’s busiest shipping lanes.
Given the strait’s economic and geopolitical significance, any conflict in the region would quickly escalate into a global issue. The stakes are high for both Iran and the U.S., with billions of dollars at risk and energy-dependent economies waiting on developments. This underscores how regional tensions can have far-reaching consequences for the global economy and international relations.
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Originally published on Al Jazeera on 2/22/2026