The Strait of Hormuz, a narrow channel between Iran and Oman, is once again in the spotlight as geopolitical tensions disrupt oil shipments through one of the world’s most vital energy chokepoints.
Though the United States doesn’t rely directly on Middle Eastern crude, the closure of that strait can still reverberate through global markets and push up fuel prices at home.
That’s the view of Tulane Institute of Energy professor Eric Smith, who says the strait sits at the top of the global supply chain for crude oil. Markets around the world price risk into oil costs when that route is blocked because most nations depend on it to export energy.
“Even if we don’t get our oil directly from the Middle East,” Smith explains, “decisions made at the strait still ripple through global markets and ultimately affect what you pay at the pump.”
Historically, when the strait has been closed, such as during conflicts in 1980 and 2001, the U.S. government has stepped in with temporary maritime insurance by reflagging vessels as American to keep crude moving.
Smith says those kinds of measures can cushion short‑term disruptions, but they’re not long‑term fixes.
He points out that other transport routes exist, but one is too dangerous for regular traffic and another pipeline in the region lacks enough capacity to make up for the loss of tanker shipments.
“In the interim,” Smith says, “we may see a boost in demand at Gulf Coast refineries as the government gets insurance issues straightened out.”
While there are potential positives, including continued U.S. oil production and refined exports, Smith cautions that bridging the supply gap will require using tankers from places like Venezuela, where safety concerns are real.
“Filling the difference while the straits are closed is a challenge,” he says, “and it’s something consumers should be aware of as we look ahead.”
As energy markets respond to these global shifts, U.S. drivers may feel the impact at the pump, a reminder that even geographically distant chokepoints can shape everyday costs at home.