DUBAI, United Arab Emirates (AP) — The growing war in Iran The suspension of surface tanker traffic through the Strait of Hormuz and soaring oil prices have highlighted the narrow strait’s critical role in global energy supplies.

The Strait of Hormuz is the narrow mouth of the Persian Gulf, approximately 1/5 of the world’s oil passes. Tankers plying the strait, which borders Iran to the north, transport oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. Most of that oil goes to Asia.

Disruption of traffic through the Strait of Hormuz would cause significant disruption to oil trade.

“The scale of what is at stake cannot be overstated,” said Hakan Kaya, senior portfolio manager at investment management firm Neuberger Berman. He said oil companies could absorb a partial economic slowdown lasting one to two weeks. But if a complete or near-total shutdown lasts more than a month, oil prices, which were trading around $80 on Tuesday, would rise by “significant triple digits” and natural gas prices in Europe would rise “toward or above crisis levels seen in 2022.”

Here’s what you need to know about the Straits and the growing Iran war.

Important waterways for global transport

The Strait of Hormuz is a winding waterway that is approximately 33 kilometers (21 miles) wide at its narrowest point. It connects the Persian Gulf and the Gulf of Oman. From there the ship can sail to other parts of the world. Although Iran and Oman have territorial waters in the strait, it is considered an international waterway open to all ships. The United Arab Emirates, home to skyscraper-filled Dubai, is also located near this waterway.

The Strait has long been important for trade

The Strait of Hormuz has been an important location for trade throughout history, with ceramics, ivory, silk, and textiles shipped from China through the region. In modern times, it is a shipping route for supertankers carrying oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE, and Iran. Most of it goes to Asian markets, including China, Iran’s only remaining oil customer.

Saudi Arabia and the UAE have pipelines that could circumvent this transit, but the U.S. Energy Information Administration says that “most volumes that transit the strait have no alternative means of exiting the region.”

The threat to the root is Rising global energy prices This has been the case in the past, including during the Israel-Iran war in June.

Is the strait closed?

Iran attacked several ships in the Strait of Hormuz, threatening ships attempting to pass through it and effectively closing the strait.

“The Strait of Hormuz is closed.” declared Iranian Brig. General Ebrahim Jabarian advisor to the paramilitary Revolutionary Guards, declared that ships passing through the Revolutionary Guards would be set on fire.

Previously, Iran briefly close part of the strait In mid-February, it was said to be a military exercise. Oil prices rose about 6% in the following days.

In times of tension and conflict in the past, Iran has sometimes harassed ships passing through the strait, and during the Iran-Iraq war in the 1980s, both sides used naval mines to attack tankers and other vessels and completely cut off traffic in the area. However, since the 1980s, Iran has not followed through on repeated threats to completely close the waterway. Even during last year’s 12-day war. When Israel and the United States shelled Iran’s main nuclear and military facilities.

Shippers around the world suspend operations

Global shippers have issued service alerts, saying they have ceased operations in the region. Danish shipping company Maersk, the world’s largest, announced on Sunday that it would suspend all vessel navigation in the Strait of Hormuz until further notice. Other ocean carriers such as Hapag-Lloyd, CMA-CGM and MSC made similar announcements.

“Nobody wants to sail through there, and no insurance company is going to support shipping through there at this point,” said Tom Goldsby, logistics chair for the University of Tennessee’s Department of Supply Chain Management. “Ships stranded in the Gulf have nowhere to go. … There are also a number of ships that were heading to the Gulf to replace them. Of course, they’re currently anchored or going elsewhere.”

Data analysis firm Kplr estimated on Monday that 70 laden oil tankers and 75 clean tankers carrying refined petroleum products were waiting to pass through the Middle East Gulf. According to Kplr, this is about double the normal number. Meanwhile, about 60 tankers are anchored just outside the Middle East Gulf, east of the Strait of Hormuz.

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Anderson reported from New York.