Why in News?
Escalating tensions in West Asia have stranded several merchant vessels near the Strait of Hormuz.
Description:
About Strait of Hormuz:
| Feature | Details |
| Location | Connects the Persian Gulf with the Gulf of Oman |
| Neighbouring countries | Iran (north) and Oman & UAE (south) |
| Type | One of the world’s most critical maritime chokepoints |
Strategic Importance:
- Global Energy Transit: Around one-fifth of the world’s oil and gas trade passes through the strait. Major exporters using this route include Saudi Arabia, Iraq, Kuwait, UAE, and Qatar.
- Key Shipping Route: Essential corridor for oil tankers and LNG carriers moving from the Persian Gulf to global markets.
Impact of Regional Conflict:
- Maritime Disruptions: Merchant vessels face navigation delays and congestion near the strait.
- Rising Insurance Costs: Ships transiting the route face war-risk insurance premiums, reportedly 10–15 times higher during conflict.
- Risk to Global Supply Chains: Any disruption could trigger global oil price volatility and energy market instability.
Importance for India:
- A large share of India’s crude oil imports from West Asia passes through the strait.
- Disruptions may affect energy security, shipping costs, and trade flows.
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