Iran’s Nuclear Program & Western Sanctions

Places in news: Strait of Hormuz

Why in the News?

Iran’s Parliament has approved a motion to block the Strait of Hormuz, raising concerns worldwide.

Strait of Hormuz

About the Strait of Hormuz:

  • Geographic Location: The Strait of Hormuz is a narrow waterway that connects the Persian Gulf to the Gulf of Oman and eventually to the Arabian Sea.
  • Dimensions: It is about 167 km long and 33 km wide at its narrowest, making it one of the world’s most strategic maritime chokepoints.
  • Bordering Countries: The strait lies between Iran (north) and Oman (south), with nearby cities such as Bandar Abbas, Khasab, and Dubai.
  • Shipping Lanes: It contains designated lanes just 3 km wide in each direction to manage heavy oil tanker traffic.
  • Key Islands: Important islands include Qeshm, Hormuz, and Hengam (controlled by Iran) and disputed ones like Abu Musa and the Tunbs, claimed by both Iran and the UAE.
  • Naval Depth Advantage: Waters near the Musandam Peninsula reach depths over 650 feet, ideal for deep-draft oil tankers.
  • Security Risks: Due to its narrowness, the strait is vulnerable to disruption from mining, military action, or cyber interference.
  • Historical Tensions: It has witnessed frequent maritime tensions, especially during Iran–West conflicts but has never been fully blocked.

Its significance:

  • Global Oil Flow: Over 20 million barrels of crude oil per day pass through the strait, accounting for 25% of seaborne oil trade and 20% of global consumption.
  • Gas Exports: It is vital for LNG exports, especially from Qatar, reaching markets across the globe.
  • Asian Dependence: Countries like India, China, Japan, and South Korea import 69% of the oil that flows through the strait.
  • Market Sensitivity: Any disruption can spike global oil prices, increasing fuel and commodity costs worldwide.
  • Limited Alternatives: Overland pipelines like Saudi Arabia’s East-West (5 million bpd) and UAE’s Habshan-Fujairah (1.8 million bpd) offer only partial alternatives.

Implications of Blockade:

  • Shipping Costs: During geopolitical tensions, insurance and freight charges for using the strait surge significantly.
  • India’s Vulnerability: India relies heavily on the region for oil imports, so instability could raise inflation, disrupt energy supplies, and impact the trade balance.
  • Strategic Response: A full blockade could trigger direct military action, particularly from the US 5th Fleet based in Bahrain.
  • Mutual Economic Impact: Disruption would affect both exporters and importers, including Iran and its major customer, China.
[UPSC 2010] Which one of the following can one come across if one travels through the Strait of Malacca?

Options: (a) Bali (b) Brunei (c) Java (d) Singapore*

 

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