Definition
A narrow sea passage between Iran and Oman that connects the Persian Gulf to the open ocean, and one of the world's most important routes for oil.
The story
Roughly a fifth of the world's oil consumption passes through it, according to the EIA (Energy Information Administration). In November 2026, Reuters noted that the effective blockade of the strait had reshaped energy flows and fed into inflation and rate expectations.
Why markets watch it
Any threat to shipping there can send oil prices sharply higher.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms