As the war between Israel and Iran heats up, tensions are rising and everyone is waiting anxiously.
A significant worry is the possible effect on international trade, particularly in light of the recent US strikes on Iranian nuclear sites, in addition to the direct human cost. Below is a summary of the main variables involved:
Hormuz Strait: A Crucial Chokepoint
Oman and Iran are separated by the narrow Strait of Hormuz. It links the Arabian Sea, the Gulf of Oman, and the Persian Gulf. Given that a startling one-fifth of the world’s oil and petroleum consumption passes through it every day, its strategic significance cannot be emphasized.
