Why Strait of Hormuz is Important

Photo by US Energy Information Administration

Photo by US Energy Information Administration

Emilio Bernal, Staff

Hang on for a minute...we're trying to find some more stories you might like.


Email This Story






Iran, a country located in the Middle East, has been constantly involved in the interaction of trade from the Hormuz Strait where around one-fifth of the world’s oil supply passes (around twenty-one million barrels per day) through. If this conflict keeps happening, oil prices will surge two percent. This means that if the price of gas is $2.99 a gallon, it will increase .07 cents. Since Iran’s interaction in global trade, the USA has been constantly having conflicts with the Middle Eastern country; This includes things such as putting sanctions and taxes against Iran’s trade. 

 

If Iran keeps getting involved in the Hormuz Strait and with international trade, not only will it affect our gas prices, but it will additionally affect: the economy, trade prices, and friendships of other countries.