Mentor’s Comment:
The answer must discuss the political and economic significance of Strait of Hormuz.
In a few introductory lines discuss the situation.
In brief discuss the following aspects –
Why is the strait important?
What are the associated political tensions around it?
Narrate the major incidents.
Discuss the significance
Conclude with what more needs to be done.

Answer:
The Strait of Hormuz is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world’s most strategically important choke points.
In July 2018, Iran made threats to close the strait. Citing looming American sanctions after the U.S withdrew from the JCPOA deal earlier in the year. Iran’s Revolutionary Guards reported they were ready to carry out the action if required.

IMPORTANCE-
Strait of Hormuz:

Economic significance:
1. Important sea line of trade. One fifth of world oil shipment pass through it.
2. It impacts energy security of various oil importing economies such as India China etc.
3. It can impact inflation and current account deficit in many developing economy as price of crude oil is linked to many other products.
4. Impacts economy of major oil exporting economies such as quwait,Qatar,Iran ,Iraq etc.

Political significance:
1. Important for India connectivity with central asia and Europe through INSTC and it’s projects in chabahar port
2. Effects India and other international effort towards stability in gulf, middle East and even afganistan.

Conclusion:
The high seas are constituent element of the global commons which belongs to the entire world. Blocking the freedom of navigation goes against the rules based order of the UNCLOS and other inter-governmental agreements. The bilateral tensions should not affect the global trade and in turn the other countries. Issues must be sorted out by discussions between the concerned parties and peaceful solutions are the need of the hour.