Strait of Hormuz: Iran's De Facto Blockade Shakes Global Economy, Oil Prices Surge

• The Strait of Hormuz, between Iran and Oman, is the sole passage from the Persian Gulf to the Arabian Sea, crucial for global energy transport.
• Approximately one in five barrels of globally traded oil and significant LNG from Qatar pass through this 33 km wide strait.
• Following recent attacks on Iran, the country is reportedly restricting movement, leading to a "de facto closure" as ships avoid the area due to security concerns.
• Iran uses the strait as a strategic pressure point, disrupting shipping to gain international attention amidst military tensions and sanctions.
• The disruption causes oil price hikes, increased shipping costs, and potential inflation, significantly impacting India's crude oil imports and economy.