The Strait of Hormuz is a critical geographical concept, defined as a narrow sea passage that connects the oil-rich Persian Gulf with the Gulf of Oman and the Arabian Sea. It is the only maritime exit from the Persian Gulf to the open ocean and is considered the world's most important oil transit chokepoint. Its strategic importance solidified as the primary export route for oil from major Gulf producers like Saudi Arabia, Iran, and Qatar.
The strait's mechanism for navigation is the Traffic Separation Scheme (TSS), which mandates two-mile-wide navigable channels for inbound and outbound shipping, separated by a two-mile buffer zone. Legally, the strait is an international strait used for navigation, and its regime is governed by the right of transit passage under the United Nations Convention on the Law of the Sea (UNCLOS). This right ensures free, continuous, and unobstructed passage for all ships. However, the strait is entirely covered by the 12 nautical mile territorial waters of Iran and Oman. Iran, which has not ratified UNCLOS, contests the transit passage regime, claiming the less extensive right of innocent passage applies.
The strait connects directly to global energy security and the Indian economy. In the first half of 2025 (1H25), total oil flows through the strait averaged 20.9 million barrels per day (b/d). Crucially, 89% of the crude oil and condensate that moved through the Strait in 1H25 went to Asian markets. China, India, Japan, and South Korea were the top destinations, accounting for a combined 74% of all Hormuz crude oil and condensate flows in 1H25.