Does the World Rely on the Strait of Hormuz for Shipment of Commodities?

By FRANCIS SOMONI 

Second Year BA Journalism and Mass Communication Student,  Chuka University 

Have you wondered what might happen if Iran shuts the global oil corridor? Following the current ongoing war between Iran and Israel with the United States of America as the Israeli ally on the other hand. Iran says it will “set fire” to any ships trying to pass through the Strait of Hormuz, the world’s busiest oil shipping channel.

Many questions have been raised by a number of countries mostly the countries which rely on this route for shipment of commodities when both importing and exporting goods, with about 20% of global oil and gas passing through the narrow lane in the Gulf. But now Iran’s General Sardar Jabbari said that Tehran will now “not let a single drop of oil leave the region”. This response by Iran following the United States and Israel strikes has already ratcheted up oil  prices in a number of nations.

In Kenya, for instance, many people have expressed their fear of inflation of commodities and services not only in Kenya but also worldwide. Blocking the Strait of Hormuz may also hit some of the world’s biggest economies for example, India, Japan and China which are among the top importers of crude oil through the waterway.

Analysts have warned that the longer there are threats to ships using the Strait of Hormuz, the higher the price of oil and the subsequent shipping of it. This is due to the fact that ships will be forced to use an alternative route which is a way much longer. “It is de facto closed in that no one cares to go through”, Arne Lohmann Rasmussen, chief analyst at Global Risk Management, a provider of energy market insights told CBS News.

The blockade of the useful shipping lane will also affect the Gulf countries like Saudi Arabia whose economy rely heavily on energy exports. For instance, Iran by comparison is estimated to export about 1.7 million barrels per day, according to the International Energy Agency. Thus the blockade of the Strait of Hormuz will not only have affected shipment of commodities but also it will shake vigorously the economies of many nations.

Kenyans remain hopeful as they send their views to the government to look for alternative ways as well as to be always prepared for such instances so as to avoid inflation of the economy m which may lead to the exploitation of the ordinary Kenyans economically. This situation may not be seen in East African countries only but also across the globe.

Following the importance of The Strait of Hormuz, it is therefore important for the war in the Middle East be stopped with the countries involved such as Iran, Israel and USA looking for a peaceful means to settle their conflicts instead of using war. Many countries rely on this channel for the sustainance of their economics thus their economies will be greatly affected if this war continues and Iran still closes The Strait of Hormuz channel.