What to know about the Strait of Hormuz, a key oil shipping waterway

The Strait of Hormuz is a small strip of water connecting the Persian Gulf to the world’s oceans, and it has become a big problem for the global economy. On a typical day, ships carrying about a fifth of the world’s oil sail out of the Gulf through the narrow passageway. But the war with Iran means it’s effectively closed, hemming in more than 90% of that crude and refined products, according to the International Energy Agency. The Islamic Republic has vowed to block the region’s oil exports, saying it would not allow “even a single liter” to be shipped to its enemies. The snarls have sent oil prices above $100 per barrel and threatened a surge of painful inflation for the global economy if the blockage lasts a long time. “The scale of what is at stake cannot be overstated,” said Hakan Kaya, senior portfolio manager at investment management firm Neuberger Berman. Some energy analysts believe oil prices could jump to $150 per barrel if the strait remains closed