The Strait of Hormuz has been in the headlines recently. It is one of the world’s most important shipping routes, located between Iran and Oman.
The strait’s importance comes from the sheer volume of traffic that passes through it — cargo ships, container vessels, and oil tankers make it one of the busiest maritime routes in the world. Roughly 20% of the world’s crude oil exports pass through this narrow passage. Any disruption here sends immediate ripples through global markets, which is why keeping it secure and open is so critical.
The situation there is currently tense. Following an Iranian attack on a Cyprus-flagged container ship, the United States has continued striking Iranian targets. In response, Iran has carried out retaliatory attacks across several Gulf states. US Defense Secretary Pete Hegseth said Iran had “made a bad choice” and would now pay the price. Iranian Parliament Speaker Mohammad Bagher Qalibaf posted on X: “The era of one-sided deals is OVER. We told you: keep your word or pay the price. Reality is knocking.”
The impact is already visible in Asian markets, with petrol and diesel prices rising, and gas becoming harder and more expensive to source. This matters even more for South Asia, since a large share of the Gulf’s labour force comes from the region. If the conflict escalates into a full-scale war, it could affect thousands of households across South Asia — from rising fuel costs at home to the risk of job losses for workers employed in the Gulf.