NEWSMAZE EXPLAINS
Why the Strait of Hormuz Matters
A narrow waterway connects Persian Gulf energy producers to global markets, making disruption there economically significant.
Where it is
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It lies between Iran and Oman and is one of the world's most strategically important maritime passages.
Why markets watch it
Large volumes of oil and liquefied natural gas move through the strait. Disruption can affect shipping insurance, tanker routes, energy prices and expectations about future supply.
Why it matters to the U.S.
Even when U.S. energy supplies do not come directly through the strait, global oil and shipping prices can influence fuel costs, inflation expectations, markets and allied economies.