New Delhi, March 24 -- Global energy markets often appear vast and diversified, supported by complex networks of producers, shipping routes, and financial systems. In reality, a remarkable share of the world's oil and gas trade still depends on a single narrow passage. The Strait of Hormuz, located between Iran and Oman, is only about 33 km wide, yet it carries roughly 20% of the world's oil supply and a significant share of global liquefied natural gas. The escalating Iran conflict in early 2026 has once again exposed how fragile this dependence is.

What policymakers often describe as a chokepoint has functioned more like a switch. When tensions rose, shipping through the strait slowed dramatically, with traffic at one point falling by ...