The Strait of Hormuz, situated between Iran and Oman, is widely considered the world’s most vital oil transit route. It links major Gulf producers, including Saudi Arabia, Iraq, and the UAE, to international markets through the Gulf of Oman and the Arabian Sea. Nearly one-fifth of global daily oil consumption flows through the narrow channel, which is approximately 33 kilometres wide at its narrowest point.
It handles nearly 20% of global daily oil consumption, Balasundaram said the larger threat lies elsewhere. “The bigger risk is the floating storage,” he said, referring to the hundreds of oil-laden tankers anchored across the Persian Gulf.
Missile exchanges between Iran and Gulf nations, along with drone activity, have heightened the danger. Even debris from intercepted missiles could strike vessels, potentially causing catastrophic damage. “If such an incident occurs, there may be no cover available today,” he warned.