20.9M Barrels/Day Flow Through Strait of Hormuz 🛢️

Key Takeaways

• Roughly a fifth of global oil passes through the Strait of Hormuz, the second-largest oil chokepoint in the world.
• As tensions accelerate between the U.S. and Iran, any closure to the Strait of Hormuz could cause oil prices to spike to up to $130.
• The U.S. has imposed sanctions on Iranian oil, in efforts to exert pressure on the regime.

What's At Stake?

While a blockade of the Strait of Hormuz is considered a distant possibility, its closure could ripple across global supply chain networks.

In particular, Japan, China, and India would be impacted the most due to shipping large volumes of crude oil through the strait.

Overall, the total volume of oil passing through is valued at around $600 billion, with any shock to oil prices likely affecting production costs—in turn raising the prices of consumer goods.