Add India.com as a Preferred Source Add India.com as a Preferred Source
Advertisement

Why Strait of Hormuz matters so much for global oil supply? EXPLAINED

Here, we take you through complete details regarding Strait of Hormuz, the integral oil route globally.

By Saanchi Gupta | Updated: April 6, 2026 6:28 PM IST

Why Strait of Hormuz is one of the most important oil routes globally?

You may have heard about the Strait of Hormuz in news lately. Are you wondering why is this water route so important for the world? Even a small disruption here can affect fuel prices globally. Here, we take you through a simple breakdown of why it matters so much.

What is the Strait of Hormuz?

It is a narrow water passage between the Omani Musandam Peninsula and Iran. This makes it an integral global shipping route. After US and Israel attacked Iran on February 28, the latter had effectively locked the passage for many countries, affecting the global oil supplies.

Advertisement

Huge amount of oil passes through the Strait of Hormuz

You may be surprised to know that 20 per cent of the world’s oil supply passes through this route. This makes it one of the busiest oil transit points. Any disruption here may impact global fuel supply.

Major oil-producing countries depend on Strait of Hormuz

Countries like Saudi Arabia, UAE, Iraq and Kuwait export oil through this route and they are considered some of the biggest oil producers.

Advertisement

India's dependency on Strait of Hormuz

India remained almost 60 percent dependent on the oil imports, out of which, 90 per cent entered the country through the Strait of Hormuz. This is one of the reasons for the supply chain distributions and LPG crisis in some parts of India when the war started. However, the government later directed for an increase in the domestic LPG production to solve the crisis. In a nutshell, India imports most of its oil from West Asia, which directly affects petrol, diesel and LPG supply.

Conflicts in Strait of Hormuz

Any conflict in the region can greatly affect shipping as the ships may slow down or avoid the route during conflicts. This leads to supply issues and price rise globally.

Global impact of disruptions

If the Strait of Hormuz gets completely blocked, the oil supplies may reduce significantly, which can further result in global supply reduction and an increase in fuel prices. This impacts transport, economy and daily life.