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Why is it important to oil that the Strait of Hormuz is so wide?

The United States and Israel launched an attack on Iran on Saturday, which could result in the closure of a major oil-export route, the Strait of Hormuz.

Here are some details about the Strait.

What is the 'STRAIT of HORMUZ'?

The strait is located between Iran and?Oman? and connects the Gulf of Oman in the south with the Arabian Sea to the north. The strait is only 21 miles wide (33 km), with a shipping lane that is just 3 km wide in each direction.

Why does it matter?

Around a fifth (25%) of all oil consumed in the world passes through this strait.

Data from the analytics firm Vortexa revealed that on average, more than 20 million barrels per day of crude oil, condensate, and fuels were transported through the Strait in 2013.

OPEC member Saudi Arabia, Iran and the United Arab Emirates export the majority of their 'crude oil' via the Strait. This is mainly for Asia.

Qatar, one of the largest LNG exporters in the world, ships almost all its LNG through this strait.

Saudi Arabia and the UAE, two of OPEC+'s top producers, have increased oil exports recently as part a contingency plan.

The UAE and Saudi Arabia have been looking for other ways to bypass the Strait. The U.S. Energy Information Administration estimated in June of last year that existing UAE and Saudi pipelines have unused capacity of about 2.6 million barrels a day (bpd).

Fifth Fleet of the United States, based out of Bahrain, has been tasked to protect commercial shipping in this area.

History of Tensions

In 1973, Arab producers led by Saudi Arabia imposed an oil embargo against Western supporters of Israel's war with Egypt.

The U.S. is a major exporter and producer of OPEC crude.

In the Tanker War that raged between 1980-1988, both sides tried to disrupt the other's exports.

In January 2012, Iran vowed to "block the Strait" in response to U.S. sanctions and European ones. In May 2019, four vessels, including two Saudi oil tanks, were attacked near the UAE coast outside the Strait of Hormuz.

Iran seized three vessels in the Strait of Hormuz, one each in 2023 and 2024. Some of these seizures were a result of U.S. tanker seizures related to Iran.

The U.S. attacked Iran's nuclear facilities last year. Iran was considering closing the Strait. (Reporting and editing by Dmitry Zhdannikov, Janet Lawrence and Dmitry Zhdannikov. Additional reporting and editing by Marwa Rashed and Yousef Sabah.

(source: Reuters)