Strait of Hormuz crisis: why this tiny passage holds the world’s economy hostage

From ancient empires and Marco Polo’s trade routes to today’s oil lifeline carrying 20% of global supply; how a narrow maritime chokepoint between Iran and the Gulf became the world’s most dangerous economic pressure valve, and why current disruptions could trigger fuel shocks, food supply risks and global market instability

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The Strait of Hormuz, a narrow maritime passage connecting the Persian Gulf to the Gulf of Oman and the wider Indian Ocean, has again become a focal point of global concern amid tensions tied to the war involving Iran. What might appear on a map as a thin strip of water has, for millennia, stood at the crossroads of trade, empire and geopolitics. Today, as shipping disruptions rattle global markets, its historical role helps explain why developments in this corridor carry such far-reaching consequences.
Situated between Iran to the north and the Arabian Peninsula to the south, the strait forms the only natural outlet from the Persian Gulf. At its narrowest point, it measures roughly 30 to 35 kilometers (19 to 22 miles) across, with designated shipping lanes significantly tighter. This geography has made it one of the most strategically sensitive chokepoints in the world, where control over a confined maritime space can influence global flows of energy, goods and military power.
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צילום לוויין מפרץ עומאן מיצר הורמוז
צילום לוויין מפרץ עומאן מיצר הורמוז
(Photo: AFP PHOTO / NASA)
In modern times, the strait has become synonymous with global energy security. Roughly one-fifth of the world’s daily oil supply passes through its waters, along with about 20% of global liquefied natural gas. Tankers departing from major producers such as Saudi Arabia, Qatar and the United Arab Emirates must traverse the corridor to reach international markets. Any disruption — whether from military escalation, attacks on vessels or political decisions — can quickly ripple across global economies, driving up fuel prices and destabilizing supply chains.
The strait also plays a lesser-known but critical role in global food security. Gulf states are major exporters of fertilizers, including urea and other nitrogen-based products essential for agriculture worldwide. These shipments, too, pass through the narrow waterway, meaning disruptions can affect not only energy markets but agricultural production far beyond the region.
Yet the strategic importance of the Strait of Hormuz long predates oil, gas and modern geopolitics. Its role as a gateway between regions dates back thousands of years to the earliest civilizations of the Near East.
As early as the third millennium BC, the Persian Gulf served as a vital commercial artery linking Mesopotamia, the Arabian Peninsula, Iran and the Indus Valley civilization. Merchants from city-states such as Ur and Lagash sailed these waters in search of copper and diorite from Oman, as well as timber, precious stones and luxury goods from regions farther east. Maritime trade across these routes helped sustain early urban economies and facilitated cultural exchange across vast distances.
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Island of Harmuz on a map from 1745
Island of Harmuz on a map from 1745
Island of Harmuz on a map from 1745
Any vessel traveling between Mesopotamia and the Indian Ocean had to pass through a narrow maritime gateway — the waters that would later be known as the Strait of Hormuz. Even in the Bronze Age, this made the passage a critical corridor for commerce, communication and the movement of ideas.
As power in the Near East shifted from one empire to another, control of the Gulf and its entrance followed. Around 500 BC, the Achaemenid Persian Empire, under rulers such as Darius I, unified a vast territory stretching from the Mediterranean Sea to the Indus River Valley. Under Persian rule, the Gulf became an imperial lifeline, linking distant provinces with administrative and economic centers in what is now southwestern Iran and Mesopotamia.
It was likely during later periods, under the Parthian or Sasanian empires, that the strait acquired a name resembling its modern form. The name “Hormuz” is widely believed to derive from “Hormuzd,” the Middle Persian form of Ahura Mazda, the supreme deity in Zoroastrianism, suggesting a meaning connected to divine protection or authority. Another theory links the name to local terms referring to dates, reflecting agricultural features of parts of the region.
Recognizing the strategic importance of the passage, Sasanian rulers extended their control across both its northern and southern shores. This effectively gave them command over access to the Persian Gulf, reinforcing the strait’s role as a geopolitical gateway.
Even distant empires were aware of its significance. In 116 AD, Roman Emperor Trajan reached the head of the Persian Gulf during his eastern campaigns. According to historical accounts, he observed ships sailing toward India, reflecting the established trade networks that passed through the strait and connected the Mediterranean world to the Indian Ocean.
Following the rise of Islam in the 7th century, the region became integrated into a rapidly expanding trade network that spanned East Africa, India and Southeast Asia. Muslim merchants dominated much of the Indian Ocean trade during the medieval period, with the Persian Gulf serving as a central hub and the Strait of Hormuz acting as its gateway.

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Kingdom of Hormuz
Kingdom of Hormuz
Kingdom of Hormuz
(Photo: Wikipedia)
By the late medieval period, a powerful and cosmopolitan trading state emerged that would give the strait its enduring name: the Kingdom of Hormuz. Originally located on the mainland of southern Iran, the kingdom relocated in the 13th century to the island of Hormuz at the entrance to the strait, amid regional instability and disruptions associated with the Mongol era.
This move proved transformative. From its island stronghold, Hormuz developed into one of the most important commercial centers in western and southern Asia. The kingdom itself had limited natural resources and produced little of its own goods. Instead, its wealth was derived from its strategic location at the intersection of major maritime trade routes.
Merchants from across Eurasia passed through Hormuz, bringing spices, textiles, pearls, precious metals and ceramics. The kingdom prospered by taxing this commerce, and its capital became known for its wealth, diversity and vibrant trade.
Travelers from distant lands described the city in glowing terms. The Venetian merchant Marco Polo, who visited the region in the late 13th century, wrote of a bustling marketplace filled with goods from across the known world. Later observers echoed these descriptions, portraying Hormuz as a glittering center of commerce sustained not by production but by its command of one of the most strategic maritime positions on Earth.
Its wealth and location also made it a target. In the early 16th century, European powers began seeking control over key maritime routes linking Europe and Asia. In 1507, Portuguese forces led by Afonso de Albuquerque captured the island of Hormuz, establishing a fortress and naval base.
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The Portuguese Castle on Hormuz Island
The Portuguese Castle on Hormuz Island
The Portuguese Castle on Hormuz Island
(Photo: Wikipedia)
From this position, Portugal was able to exert significant influence over shipping entering and leaving the Persian Gulf. Although local rulers and rival empires challenged Portuguese control, it remained in place for more than a century.
Portuguese rule ended in 1622, when the Safavid Persian Empire, working with the English East India Company, captured the island and expelled Portuguese forces. This marked a shift in the balance of power, with European states continuing to expand their commercial presence in the region.
By the 19th century, the British Empire had emerged as the dominant naval power in the Persian Gulf. Britain’s strategic interest was driven largely by the need to secure sea routes to India, then a central part of its empire. Through treaties with local rulers along the Arabian coast, Britain established a network of influence that ensured control over the region’s maritime routes.
The 20th century brought a transformation that elevated the Strait of Hormuz to unprecedented global importance. The discovery of vast petroleum reserves across the Gulf — beginning in Iran in 1908 and followed by major finds in Saudi Arabia, Kuwait and Iraq — turned the region into the center of the global energy economy.
As oil exports expanded dramatically after World War II, the strait became the primary route through which crude oil was transported to markets in Europe, Asia and North America. Its importance has only grown as global energy demand has increased.
Today, the Strait of Hormuz remains indispensable to the functioning of the global economy. Its narrow lanes, heavy traffic and proximity to regional military forces make it particularly vulnerable to disruption.
That vulnerability is now being tested.
US airstrikes near the Strait of Hormuz
(Video: CENTCOM)
Since late February, Iran has effectively imposed a blockade on the Strait of Hormuz following the outbreak of war, sharply restricting maritime traffic through the corridor. Shipping volumes have dropped significantly, with many vessels avoiding the route due to security threats, attacks and soaring insurance costs.
The disruption has already had global consequences. Oil flows through the strait have been curtailed, contributing to rising energy prices and increasing economic uncertainty in markets around the world.
In some cases, Iran has allowed limited passage for selected vessels while blocking or threatening others, effectively turning the waterway into a controlled chokepoint. The result has been widespread delays, stranded crews and growing pressure on global supply chains.
International leaders and organizations have warned that a prolonged disruption could trigger broader economic fallout, affecting not only fuel markets but also food supplies and industrial production.
Despite occasional transits, maritime traffic remains well below normal levels, underscoring the fragility of one of the world’s most important trade routes.
For Israel, the implications are indirect but significant. While it does not border the strait, disruptions to global energy markets can influence fuel prices, economic conditions and broader regional dynamics tied to Iran.
From ancient trade routes to modern energy lifelines, the Strait of Hormuz has remained a focal point of global commerce and strategic competition. Its long history shows that control — or instability — in this narrow passage can shape events far beyond the region, a reality now playing out once again on the world stage.
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