The Strait of Hormuz: One Fifth of the World's Oil, 21 Miles Wide

About 21 million barrels per day of oil — roughly 20% of global consumption — transits the Strait of Hormuz between Iran and Oman, along with a fifth of global LNG. Bypass pipelines can reroute less than half of it. Live vessel positions in the area are on the tanker map.

World Oil Chokepoints, Ranked by Transit Volume

Chokepoint≈Mb/dVolumeRisk note
Strait of Malacca 24 high
Strait of Hormuz 21 high
Suez Canal & SUMED 9 high
Bab el-Mandeb 9 high
Cape of Good Hope 7 medium
Turkish Straits 3 medium
Danish Straits 3 low
Panama Canal 1 low

Approximate EIA transit estimates (see the flow map for sources and vintages). The Strait of Malacca carries more total volume, but Hormuz is the more acute risk: it has no meaningful sea alternative, and most cargo originates inside the Gulf.

Why It Matters for Prices

The exposure

  • Nearly all seaborne exports from Kuwait, Qatar and Bahrain, and most from Saudi Arabia, Iraq, the UAE and Iran, transit Hormuz.
  • Around 80% of Hormuz crude goes to Asia — China, India, Japan and South Korea are the most exposed buyers.
  • Qatar's LNG (about a fifth of global supply) has no alternative route at all.

The risk premium

  • Tanker attacks, seizures and drills reliably add dollars per barrel of "Hormuz premium" — visible in Brent and in the oil-VIX on the dashboard's macro strip.
  • Insurance and freight rates react first; watch tanker rates alongside crude.
  • Bypass capacity (Saudi East-West line, UAE-Fujairah) covers under half of normal flow.

Strait of Hormuz FAQ

How much oil flows through the Strait of Hormuz?

Roughly 21 million barrels per day of crude oil and petroleum products — about a fifth of global consumption — plus around a fifth of the world's LNG (nearly all of Qatar's exports). It is the single most important energy chokepoint on earth.

Where is the Strait of Hormuz?

Between Iran to the north and Oman/UAE to the south, connecting the Persian Gulf to the Gulf of Oman and the open ocean. At its narrowest it is only 21 miles wide, with two 2-mile-wide shipping lanes. Every barrel exported by sea from Kuwait, Qatar, Bahrain — and most from Saudi Arabia, Iraq, the UAE and Iran — passes through it.

Can oil bypass the Strait of Hormuz?

Only partially. Saudi Arabia's East-West pipeline to the Red Sea and the UAE's pipeline to Fujairah together offer roughly 6–8 Mb/d of nominal bypass capacity — well under half of normal Hormuz flow, and both have their own vulnerabilities. Qatar's LNG has no bypass at all.

What would a closure do to oil prices?

Even partial disruption would be the largest supply shock in history — analysts' scenarios put crude well above $150 and potentially far higher, with tanker insurance and freight costs spiking immediately. That severity is exactly why full closure has never happened: it would also cut off Iran's own exports and invite massive intervention. Markets instead price recurring "Hormuz risk premia" during tensions.