Straits Of Hormuz

Introduction In 2008/09 the Strait of Hormuz could be back in the eye of the storm again. The waterway is arguably the world energy industrys single most important 'choke point, through which 40% of the worlds seaborne oil is shipped. Recent fears that the Strait could be partially or totally blocked in an Iran-related conflict in the next six months helped boost a spike in crude prices in mid- 2008. In this special report, BMI looks at the importance of this narrow passageway of water, and how various scenarios might play out for it, affecting the very large crude carrier (VLCC) market.