What is Hormuz's street and its meaning?

What is Hormuz's street and its meaning?

In the past few weeks, the tensions in the Middle East and the attacks on Iran through Israel and the USA have led to a significant increase in oil prices. While there have been no major disorders of global oil supply so far, the oil futures have risen by about 10 % since the beginning of hostility. Investors fear that Iran could interfere with shipping traffic in strategically important Hormus-Straße in response.

strategic importance of the street of Hormuz

The Hormuz's road is of crucial importance for the global economy. It connects the Persian Gulf with the Gulf of Oman and is only 21 miles wide at its closest point. This waterway is the only transport route to export crude oil from the oil -rich Persian Gulf to the rest of the world while Iran controls the north side.

oil production and trade by the hormus

About 20 million barrels of oil, which corresponds to a fifth of daily global production, pass the road every day, according to the information from the US energy information authority (EIA), which has referred to the street as "critical oil supply place".

Current price increases and market reactions

After US air strikes on three Iranian nuclear systems, the price of Brente-Rohöl, the global benchmark, rose briefly to over 80 USD per barrel-the first time since January. Before the conflict, prices had mainly been between 60 and 75 USD per barrel since August 2024

Iranian reactions and possible consequences

Future price development now depends on Iran's reaction. Rob Thummel, Senior Portfolio Manager at Tortoise Capital, warned that a potential disorder of the Iran -controlled sea route could drive oil prices to $ 100 per barrel. In his opinion, a functioning road from Hormuz is "absolutely essential" for the health of the global economy.

geopolitical tensions and their effects

An influential consultant of the Iranian head Ayatollah Ali Khamenei has already called for the Hormuz street to close. Hossein Shariatmadari, editor -in -chief of the Conservative newspaper Kayhan, warned: "After America's attack on the nuclear system in Fordow, our time has now come."

Iran could be able to trigger a shock to the oil market, to drive oil prices up and thus endanger the economic agenda of Trump through his geographical position in global mail order business.

The risks of closing the street of Hormuz

However, Vandana Hari, founder and CEO of Vanda Insights, sees a blockade of the street as a "low risk". According to her, the presence of a reinforced US Marin fleet in the region is both a deterrent and a reaction tool.

"Iran has a lot to lose and very little, if at all, to win when it tries to close the street," said Hari. "Iran cannot afford to make its oil -producing neighbors, who are neutral or even likeable to the Islamic Republic, to make enemies."

influence on Asian markets

A closure would have particularly negative effects on the oil and natural gas market in China and other Asian countries that rely on the raw materials transported across the street. According to estimates by the EIA, 84 % of crude oil and 83 % of the liquefied natural gas that crossed the Hormuz street went to Asian markets.

China, the largest buyer of Iranian oil, in the first quarter of this year 5.4 million barrels per day over the street of Hormuz, while India and South Korea each imported 2.1 million and 1.7 million barrels a day.

international reactions and security in the Persian Golf

During a regular press conference of the Foreign Ministry, China underlined the importance of Persian Golf for international trade. A spokesman for the ministry said: "China appeals to the international community to strengthen its efforts to the de -escalation of the conflict and prevent regional unrest from having a greater impact on global economic development."

on Sunday India's minister of oil and natural gas, Hardeep Singh Puri, assured the concerned investors that the country has diversified its oil supply in recent years. He emphasized that India no longer depends heavily on Hormuz's road and would take all the necessary steps to ensure the stability of fuel supply for the citizens.

This article was also made up by CNN journalists John Towfighi, Nadeen Ebrahim and Rhea Mogul.