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What is the Strait of Hormuz? Why is it important to the world and what is its significance?

Iran's Foreign Minister said that the Strait of Hormuz is open to all commercial vessels during the remaining 10 days of the U.S. brokered ceasefire between Israel, Iran-backed Hezbollah and the United States. This led to a?sharp fall in oil prices.

Senior Iranian officials said that all vessels except naval ships would be allowed to?sail through the strait, but that their plans would need to be coordinated with Iran’s Revolutionary Guards, and transiting ships would only be permitted on lanes Iran considered safe.

The U.S. and Israeli war against?Iran that began on February 28 has resulted in the deaths of thousands, destabilised the Middle East, and shook global energy markets.

Here are some details on the Strait of Gibraltar and its importance.

What is the STRAIT of HORMUZ?

The strait, which is located between Oman, Iran, and the Gulf of Oman, links the Gulf of Oman in the north with the Gulf of Oman in the south, and the Arabian Sea to the east. Its narrowest point measures 21 miles (33 kilometers) and has a shipping lane that is only 2 miles (3km) wide either way.

The waterway, which is approximately 104 miles long (167 km), is the most important shipping channel for energy in the world.

After the U.S. and Israeli strikes against Iran began on 28 February, Tehran closed the strait in order to fulfill an old threat. Iran threatened to charge ships for passing through the strait during the standoff. Shipping industry officials claim that no such unilateral action to charge fees for ships to cross a strait was ever made in modern history. Meanwhile, U.S. president Donald Trump said that free oil traffic through the strait should be part of any deal.

WHY FERTILISERS, JET FUELS, OIL AND GAS MATTER

Around a fifth (or more) of the world's oil, liquefied gas and natural gas supplies pass through this strait. It is the only sea-exit for fuels from the main exporting countries.

OPEC members Saudi Arabia and Iran, as well as Kuwait, Iraq, the United Arab Emirates and Kuwait, export most of their crude oil via?the riverway.

Qatar, one of the largest LNG exporters in the world, sends most of its LNG via the Strait. Kpler, an analytics firm, estimates that 33% of all fertilisers around the globe, including ammonia and sulphur, also pass through the Strait.

Data from the United Nations shows that traffic has fallen by 97% in the U.S. and Israel since the war began on February 28.

Long History of Tensions over the Strait

A commander of Iran's Islamic Revolutionary Guard Corps said in 2011 that closing the strait was "easier" than drinking just a glass of water. The threat had been made to the strait many times before.

In the Tanker War that lasted from 1980 to 1988, both sides tried to disrupt the other's exports.

In January 2012, Iran also threatened to close the Strait as a retaliation against 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, two in 2023, and one in 2020. Some of these seizures were in response to U.S. seizure of Iranian tankers. Iran had considered closing the Strait last year after U.S. airstrikes on its nuclear facilities.

Analysts had always considered the closing of the Strait a last resort due to the strategic changes that it could cause among Iran's adversaries and the possibility of retaliation by its own energy sector.

Why is it so difficult to secure the streit?

Shipping broker SSY Global stated that the shipping lanes were narrow and that ships had to make a turn towards Iranian islands, as well as a mountainous coastline which provides cover for Iranian troops.

Tom Sharpe said that although Iran's naval force has been largely destroyed, the Islamic Revolutionary Guard Corps still has options, including mini submarines, mines, and even jetskis with explosives.

According to the Centre for Information Resilience, Tehran is able to produce 10,000 drones per month.

IS THERE ANY OTHER WAYS TO GET RID OF THE STRAIT?

The UAE and Saudi Arabia are looking for ways to bypass this strait. They have built more oil pipelines.

These alternatives are also vulnerable, but they're not operational at the moment. An attack by Houthi Militia in 2019 on a Saudi east-west pipeline showed that.

Qatar's Foreign Ministry said that all countries of the region had the right to freely use the Strait and that any future discussions on financial mechanisms should be delayed until it has been reopened. Shipping firms had to find alternate routes for basic goods while the strait was closed. To ensure a shipment to Qatar, for example, required rerouting via the UAE.

What does international law say?

UNCLOS, the 1982 international maritime law convention, has been in effect since 1994 and states that they cannot charge a fee for allowing a ship to pass through if it is on their border.

They can, however, impose limited fees for services like piloting, tagging or port services. However, these 'fees' cannot be imposed more heavily on vessels of a particular country.

UNCLOS or UN Convention on the Law of the Sea Article 38 gives vessels the right to "transit pass" unhindered through more than 100 straits around the world, including the Strait of Hormuz.

UNCLOS has been ratified by around 170 countries, including the European Union. Iran and the United States, however, have not.

It is unclear whether the rules of the treaty allowing freedom of navigation in the maritime domain have been incorporated into customary international law or only bind the ratifying nations.

(source: Reuters)