Iran-US Tensions Spark Strait of Hormuz Control Dispute

The recent conflict between the US, Israel, and Iran has escalated tensions in the Strait of Hormuz, a vital international waterway that connects the Persian Gulf with the Gulf of Oman and Arabian Sea.

Iran's armed forces have denied American claims of ships passing through the Strait without permission, stating that they still need supervision from Iranian authorities. The dispute highlights the significance of the waterway, which accounts for 20.9 million barrels per day of oil shipments in 2023, equivalent to about 20% of the world's demand for petroleum liquids.

The Strait is crucial not only for energy supplies but also for global trade, with over 89% of all crude oil and condensate shipments through Hormuz destined for Asian markets. China, India, Japan, and South Korea were responsible for roughly 74% of the total amount transported through Hormuz in the first half of 2025.

Iranian officials have warned that any long-term disruptions to the Strait could lead to far-reaching consequences, including impacts on insurance rates, tanker operations, and energy costs. The central issue is not whether the Strait is 'open' or 'closed', but rather whether ships can move through it predictably and safely.