Dhaka, March 3 -- Tensions in the Strait of Hormuz have intensified, raising fears of a global energy shock as oil prices climb amid the escalating war between Iran, the United States and Israel.

On Monday, an Islamic Revolutionary Guard Corps (IRGC) commander declared the strait "closed" and warned that any vessel attempting to pass through would be set "ablaze", according to a report published by Al Jazeera.

Here's why that matters.

What is the Strait of Hormuz?

The Strait of Hormuz is a narrow waterway between Iran and Oman. Despite its size, it is one of the world's most critical energy chokepoints.

Roughly 20 percent of global oil supplies pass through the strait, making it indispensable to the functioning of international energ...