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The Economics of Middle East War: The ‘Strait’ Question

If Iran moves from threatening to actually closing the Strait of Hormuz, the consequences would be immediate and severe. (AI genetated image) Authored by: Shuchi ShuklaUpdated Mar 2, 2026, 10:46 ISTShareLet’s ‘Strait’ (read straight) come to a number: 20 million. That's how many barrels of oil pass through the Strait of Hormuz every single day, according to the estimation of the US Energy Information Administration.

The Economics of Middle East War: The ‘Strait’ Question

Credit: Timesnownews

Key Highlights

  • And this makes this passage the world's most important energy chokepoint - 21 miles wide at its narrowest point, with the actual shipping lane just six miles across in each direction.
  • Iran sits on its northern shore, and Oman on the other.
  • And since Saturday, the tankers that normally transit it have mostly stopped moving. Not because Iran has formally closed the Strait.
  • Not yet (thankfully).
  • But because the insurance companies that cover those ships have pulled their coverage.
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Sources

  1. The Economics of Middle East War: The ‘Strait’ Question

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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