Explainer| What is the Strait of Hormuz, and why its closure matters to Egypt?
Iran’s long-threatened closure of the Strait of Hormuz, the narrow waterway through which about a fifth of the world’s oil passes, has now become reality.
On Tuesday, Brig. Gen. Ebrahim Jabbari, an adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps, announced what he described as “strict measures” targeting oil transport in the region, confirming that the strait had been closed to maritime traffic.
“The Strait of Hormuz is currently under the full control of the naval forces of the Revolutionary Guard,” the IRGC's navy political advisor Mohammad Akbarzadeh announced. Meanwhile, Jabbari declared “any ship attempting to pass through the Strait of Hormuz will burn,” adding that “not one drop of oil will be allowed to leave the region.”
Tehran says the move is a response to US–Israeli aggression that began last Saturday.
The announcement comes amid a rapid escalation tied to the joint US–Israeli military campaign known as Operation Roaring Lion, with Iran launching missile and drone strikes against Israel and US bases across the Gulf, including in Bahrain, Qatar and the United Arab Emirates.
As tensions grow, the Strait of Hormuz—one of the world’s most critical energy chokepoints—has become a central pressure point in the confrontation. But why is the waterway so important, and what could its closure mean for the global economy?
BREAKING 🇮🇷🇨🇳 Iran says only Chinese ships can pass through the Strait of Hormuz, calling it a “gesture of thanks” for Beijing’s support. All other vessels are banned, and Tehran warns any unauthorized crossing will be met with military action. pic.twitter.com/ckKUAkh2I9
— WAR (@warsurv) March 3, 2026
What is the Strait of Hormuz?
The Strait of Hormuz is a narrow maritime passage between Iran and Oman that connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. At its narrowest point it is about 32km wide, yet it carries an outsized share of the world’s energy trade.
Roughly one-fifth of global oil supply pass through the strait, along with large volumes of liquefied natural gas and other commodities. According to the US Energy Information Administration, about 3,000 vessels transit the waterway each month, transporting roughly 20 million barrels of oil a day—cargo worth an estimated $600 billion a year.
Major producers including Saudi Arabia, the United Arab Emirates, Kuwait, Iraq and Iran rely on the route to ship crude to global markets, particularly in Asia. Qatar, one of the world’s largest liquefied natural gas exporters, depends on it almost entirely.
On the other side of the trade, major importers such as China, Japan and India rely on steady energy flows through the passage, meaning any prolonged disruption could quickly ripple through global markets and raise the cost of fuel, shipping and goods worldwide.
What are the economic effects of closing the strait?
The war on Iran has already disrupted shipping across the Gulf, with traffic through the Strait of Hormuz collapsing as security risks rise.
Since hostilities began, at least three oil tankers have been damaged and one sailor killed. Shipping traffic initially fell by about 70% before effectively stopping altogether, according to maritime tracking data. Around 150 vessels, including oil and liquefied natural gas tankers, have anchored in nearby waters rather than risk passing through the strait.
The security situation has also pushed many major shipping companies to suspend voyages or reroute vessels, while maritime insurers have withdrawn war-risk coverage for ships operating in the region, sharply increasing transportation costs.
Some shipping lines have already imposed additional charges on trade between Egyptian and Gulf ports, ranging from $1,000 to $4,000 per container, reflecting the rising risks in regional waters.
Energy markets reacted quickly. Brent crude rose about 13% to around $82 a barrel before stabilizing as traders assessed how long the disruption might last. Analysts cited by Reuters warn prices could climb to $100 a barrel or higher if the crisis persists.
The risks extend beyond oil. The strait is also a major route for liquefied natural gas, fertilizers and petrochemicals, meaning a prolonged closure could disrupt global supply chains and push up the cost of energy, food production and industrial goods.
🚨🇮🇷 BREAKING: IRAN has shown what will happen if ANYONE tries to cross the Strait of Hormuz pic.twitter.com/Ki8HVxJeQe
— Jackson Hinkle 🇺🇸 (@jacksonhinklle) March 1, 2026
Are there alternative routes?
Fears of disruption in the Strait of Hormuz have long pushed Gulf states to develop alternative routes for exporting oil, but these options remain limited.
Saudi Arabia operates a 1,200km pipeline that carries crude from its eastern oil fields to ports on the Red Sea, with a capacity of about 5m barrels a day. The kingdom has also previously converted a gas pipeline to transport crude and is studying further infrastructure projects that would allow exports to bypass the Gulf entirely.
The United Arab Emirates has built a pipeline linking its inland oil fields to the port of Fujairah on the Gulf of Oman, outside the Strait of Hormuz, with a capacity of about 1.5m barrels a day.
Even if these routes were used at full capacity, analysts say they would only offset part of the disruption. If the strait remained closed, global oil supplies could still fall by 8m to 10m barrels a day compared with normal levels.
The crisis could also widen beyond Hormuz. Yemen’s Ansar Allah movement has threatened to target shipping in the Bab El-Mandeb Strait, another critical maritime chokepoint linking the Red Sea to the Gulf of Aden and the Indian Ocean. In a speech on 28 Feb. Houthi leader Abdul-Malik Al-Houthi condemned US and Israeli strikes on Iran and said the group was ready to join the confrontation, raising the prospect of disruption along another key global trade route.
How could the conflict affect Egypt and the Suez Canal?
Concerns are growing about the war’s economic impact on Egypt, particularly on the Suez Canal, one of the country’s most important sources of foreign currency. President Abdel Fattah El-Sisi warned that an expansion of the war and the closure of the Strait of Hormuz could affect global trade flows.
Speaking during a recent Ramadan iftar hosted by the armed forces, El-Sisi said the strait’s closure could impact traffic through the Suez Canal, which has not yet returned to normal levels since October 2023, causing financial losses for Egypt. He added that Cairo had tried to prevent escalation by mediating between Washington and Tehran, noting that the war carries “negative effects for the warring states and their neighbors.”
During a cabinet meeting Tuesday, Prime Minister Mostafa Madbouly expressed concern about rising transportation costs because of the crisis, saying that if the war continues “for long periods,” the government may have to “reconsider prices,” describing the move as an “exceptional measure” not included in the government’s initial plans.
The effects of the war have also directly impacted Egyptian exports, particularly agricultural shipments to Gulf countries, according to Mostafa El-Nagari, head of the Agriculture and Irrigation Committee at the Egyptian Businessmen’s Association and board member of the Horticultural Crops Producers and Exporters Union.
El-Nagari told Al Manassa on Tuesday that some export destinations have become inaccessible for shipping, whether by sea or air, causing shipments to pile up. Gulf states account for about 35% of Egypt’s total agricultural exports.
What is China’s position on the Strait of Hormuz crisis?
As the world’s largest oil importer, Beijing has called for restraint and for safeguarding navigation through the waterway.
Chinese Foreign Ministry spokesperson Mao Ning said Tuesday that “China urges all parties to immediately cease military operations, avoid escalating tensions, ensure the safety of shipping lanes in the Strait of Hormuz, and prevent further impacts on the global economy.”
China imports about half of its crude oil needs from the Middle East, and analysts estimate that roughly 45% of its oil imports pass through the strait.
Experts warn that any prolonged disruption could threaten China’s energy security and its industrial supply chains, underscoring the strategic importance of keeping the maritime passage open.