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The strait of Hormuz is one of the most important arteries for global trade. About 20% of all oil supplies and about 20% of seaborne gas tankers pass through it.
Amid escalating military conflict between the US, Israel, and Iran, the Strait of Hormuz has re-emerged as the world's most vulnerable maritime chokepoint, threatening to paralyze 20% of global oil supplies.
As explosions rock the Middle East, the shipping lanes of this 33-kilometer-wide waterway have essentially become a global economic hostage. Dozens of massive crude carriers have dropped anchor, fearing military strikes.
The potential closure of the Strait represents a doomsday scenario for the global economy. A sustained blockade could instantly drive oil prices well beyond $100 a barrel, sparking devastating global inflation and throwing developing economies into severe crises.
The Strait of Hormuz lies between Oman and Iran, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. At its narrowest, the shipping lanes are barely two miles wide in either direction. Yet, this narrow passage is an absolute necessity for global energy security.
Approximately 20 million barrels of oil pass through the strait every single day. It handles exports from Saudi Arabia, Iran, Kuwait, Iraq, and the United Arab Emirates. Furthermore, roughly 20% of the world’s seaborne Liquefied Natural Gas (LNG), primarily from Qatar, relies on this exact route.
Following recent US-Israeli strikes on Tehran, Iran’s Revolutionary Guards have reportedly warned that no ship will be allowed to pass. Already, ships are being targeted; a Palau-flagged tanker was recently hit near Oman.
If Iran formally mines or blocks the strait, options to bypass it are incredibly limited. Saudi Arabia and the UAE have pipelines, but their capacity represents a mere fraction of the volume transported by sea. The immediate victims would be Asian manufacturing hubs, which rely heavily on uninterrupted Middle Eastern energy flows.
For East Africa, and Kenya in particular, a crisis in the Strait of Hormuz is catastrophic. Kenya is a net importer of refined petroleum products, heavily reliant on Middle Eastern supply chains. If global crude spikes to $100 per barrel, the cost of fuel at the pump in Nairobi will skyrocket instantly.
This would trigger a vicious cycle of inflation across the Kenyan economy. Transport costs for agricultural goods, manufacturing inputs, and public transit would surge, erasing recent economic gains and plunging households deeper into a cost-of-living crisis. For Kenya, the conflict in the Gulf is not a distant war; it is an immediate threat to economic survival.
"When the Strait of Hormuz chokes, the entire world gasps for air."
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