Rising tensions between Israel, the United States and Iran are increasing the likelihood of strikes on Iranian territory that could trigger an Iranian retaliation against shipping in the Strait of Hormuz, a development that would increase oil prices, generate trade disruptions and, over time, could incentivize Gulf states to find alternative oil export routes. For years, the Strait of Hormuz -- a vital waterway connecting the Persian Gulf to the Arabian Sea and measuring approximately 35 to 60 miles (55 to 95 kilometers) in width -- has remained a key geopolitical flashpoint between the United States and Iran, owing to its strategic importance for global trade and energy transit. At least 30% of the world's sea-traded crude oil passes through the strait daily. Given its importance for global oil markets, in the past decades, Iran has repeatedly threatened to blockade the strait as part of its broader rivalry with the...
