The Strait of Hormuz is a critical choke point for global energy markets, but there are ways to get around it

The Strait of Hormuz is a critical choke point for global energy markets, but there are ways to get around it

The Strait of Hormuz, through which 20% of global oil consumption flows daily, has become a critical flashpoint after U.S. and Israeli military action against Iran prompted retaliatory missile launches and shipping companies to avoid the route, driving oil prices higher. While a full closure could send crude to $100 per barrel and cause massive market disruption, alternative pipelines operated by Saudi Arabia and the UAE could divert up to 2.6 million barrels per day, potentially mitigating some economic damage.