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What to know about the Strait of Hormuz, a key passageway essential for global energy supply

By The Associated Press
DUBAI, United Arab Emirates (AP) — The Strait of Hormuz is a small strip of water connecting the Persian Gulf to the world’s oceans, and it has become a big problem for the global economy. On a typical day, ships carrying about a fifth of the world’s oil sail out of the Gulf through the narrow passageway. But the war with Iran means it’s effectively closed, hemming in more than 90% of that crude and refined products, according to the International Energy Agency. The Islamic Republic has vowed to block the region’s oil exports, saying it would not allow “even a single liter” to be shipped to its enemies. The snarls have sent oil prices hovering around $100 per barrel and threatened a surge of painful inflation for the global economy if the blockage lasts a long time. “The scale of what is at stake cannot be overstated,” said Hakan Kaya, senior portfolio manager at investment management firm Neuberger Berman.
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