Strait of Hormuz: Why This Key Oil Route Matters | BBC News

President Donald Trump threatened to “obliterate” Iran’s power plants if Tehran does not fully reopen the Strait of Hormuz within 48 hours, escalating tensions three weeks after joint U.S. And Israeli strikes against the country began on February 28th.

The ultimatum, issued Saturday night, followed Iranian ballistic missile strikes on the southern Israeli towns of Arad and Dimona, which wounded over 100 people after Israeli air defense systems failed to intercept at least two projectiles. Iran stated the strikes were retaliation for an earlier Israeli attack on Natanz, its main nuclear enrichment facility.

The Strait of Hormuz, a strategically vital waterway connecting the Persian Gulf to the Arabian Sea, has been effectively blocked by Iran since the initial attacks. Approximately 20% of the world’s oil and liquefied natural gas (LNG) typically transits the strait, which is only about 33 kilometers wide at its narrowest point. The waterway is bounded by Iran to the north and Oman and the United Arab Emirates to the south.

Shipping traffic has dramatically decreased, with Iran threatening attacks on tankers and other vessels. At least 21 vessels have been hit, targeted, or reported as having been attacked since the start of the conflict, according to an AFP news agency tally as of March 18th.

The disruption has already driven up global fuel prices, with crude oil rising above $100 a barrel – an increase of almost 70% this year and nearly 50% from the same period last year.

In response to Trump’s threat, Iran’s military warned it would target U.S. “energy, information technology and desalination infrastructure” if its own facilities are attacked.

On Sunday, Japan’s Foreign Minister Toshimitsu Motegi announced the release of one of two Japanese nationals detained in Iran, with the individual having been held since 2025. Motegi stated he is continuing to work for the release of the second detainee, who was arrested earlier this year.

Israeli military officials announced Sunday they were conducting strikes in Tehran, while Saudi Arabia’s ministry of defense reported intercepting one of three missiles launched towards Riyadh, with the remaining two falling in uninhabited areas. The Israeli military also reported that Iran launched two ballistic missiles with a range of 4,000 km at the U.S.-British military base at Diego Garcia in the Indian Ocean, marking the first utilize of long-range missiles since the conflict began.

As of Sunday, Israel indicated it was working with the U.S. To reopen the Strait of Hormuz, according to wire reports.