Iran is one of the world’s top crude oil producers, averaging 5.1-million barrels per day in 2024. When Israel launched its war with Iran, oil prices spiked amid fears of supply disruptions.

Part of that anxiety stems from geography: Iran borders the Strait of Hormuz, a critical maritime chokepoint through which a fifth of the world’s oil supply passes en route from the Persian Gulf to the Gulf of Oman.

Six of the world’s biggest oil producers – Saudi Arabia, Iran, Iraq, Kuwait, Qatar and Oman – rely on Hormuz to export their oil, most of it bound for Asian markets.

Tensions escalated further when the United States bombed Iran’s nuclear facilities on 22 June 2025. Fears mounted that Iran would retaliate by blocking the strait.

The Strait of Hormuz is the second-busiest oil transit route in the world, after the Strait of Malacca. In 2023, 20.9-million barrels of crude oil and petroleum products moved through Hormuz daily, compared to 23.7-million through Malacca.