When people say “don’t put all your eggs in one basket,” they’re probably not talking about oil tankers. But they should!
Did you know 20% of the world’s oil flows through a single 3 km-wide stretch of water? One missile, one drone strike, or one naval blockade can send global oil prices skyrocketing.
Let’s break this down so you don’t get blindsided while planning your #investmentportfolio.
🌍 What Is the Strait of Hormuz?
This tiny stretch of sea is the world’s busiest energy #chokepoint.
It’s wedged between Iran (north) and the UAE & Oman (south). It connects the Persian Gulf to the Arabian Sea — basically, if you’re shipping oil from Saudi Arabia, Iraq, Kuwait, UAE, or Qatar, it must pass through here.
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20% of global oil supply: 21 million barrels/day!
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Biggest LNG exports: Qatar, the world’s #2 LNG exporter, pipes gas through here too.
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No Plan B: There’s no alternative sea route for these supplies. None.
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💣 Why Is It So Risky?
One word: conflict.
Iran, the USA, Saudi Arabia, UAE, and even pirates — everyone wants a piece of this pie.-
Iran controls the north coast and often threatens to shut it down if pushed too far.
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The US keeps fleets and military bases in Bahrain, ready to step in.
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The area has seen drone strikes, tanker hijacks, naval blockades, and even underwater mines.
💡 Example: In 2019, US–Iran tensions led to tanker attacks. Oil prices spiked by 9% overnight!
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💼 What Happens If War Breaks Out?
Here’s the scary part for your #investmenttips:
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Energy costs shoot up: Higher petrol, diesel, cooking gas bills.
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Inflation jumps: More money spent on fuel means less spending power elsewhere.
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Oil stocks: Companies in oil exploration may get a short-term boost.
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Global trade: Shipping insurance goes up, supply chains slow down.
Even if you don’t invest in oil directly, the ripple hits everyone — from your groceries to flight tickets.
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Strait of Hormuz: Ek Chhoti Si Jagah Jo Puri Duniya Ka Oil Control Karti Hai