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Head of the Iranian Parliament’s National Security Committee, Ebrahim Azizi, on Saturday (May 16, 2026) announced on X that Iran “has prepared a professional mechanism to manage traffic in the Strait of Hormuz.” This announcement came just a few days after reports indicated that Iran had set up a new body, the Persian Gulf Strait Authority, to oversee vessel movement through the strait.
With these two developments, Iran has effectively formalised a toll system for the vessels transiting the Strait of Hormuz, the sole maritime gateway for one-fifth of global oil and LNG supplies, as per U.S. Energy Information Administration (USEIA) data. As the world still grapples with the energy crisis brought on by this stranglehold, these developments have exposed the Achilles’ heel of global trade – the critical chokepoints that connect the world’s chief maritime mercantile routes.
While Hormuz remains a global flashpoint, the Indian Ocean is also home to two of the world’s most crucial straits on which the global economy hinges, the Straits of Malacca and Bab el-Mandeb.
A closed ocean
As per C. Raja Mohan, visiting professor at the National University of Singapore’s Institute of South Asian Studies, “Unlike the Atlantic and Pacific oceans, the Indian Ocean is closed, that is, a few straits control its access. This makes these straits immensely important for international trade.”
By any measure, the Indian Ocean is at the centre of global trade. Each year, the Indian Ocean sees around 1,00,000 ships transit its waters, accounting for roughly 30% of global container traffic. Moreover, the Indian Ocean region annually carries nearly 80% of the world’s seaborne oil trade and about 9.84 billion tonnes of cargo.
While Bab-el-Mandeb and the Suez Canal form the western gateway to the Indian Ocean, the Malacca Strait forms the eastern opening. Professor Raja Mohan adds, “Unlike the Strait of Hormuz, which serves as the gateway to the Persian Gulf, the Malacca Strait and Bab-el-Mandeb work as links between larger sea routes.”
Whereas Bab-el-Mandeb connects the Mediterranean Sea to the Indian Ocean via the Suez Canal, the Strait of Malacca links the Indian Ocean to the South China Sea.
The Indian Ocean as cradle of a new blue economy
Gate of Tears
Located between the Arabian Peninsula and the Horn of Africa, Bab-el-Mandeb links the Red Sea and Suez Canal to the Gulf of Aden. The Strait is 26-kilometre-wide at its narrowest and is around 50 km in length. Literally meaning the ‘Gate of Tears’, it got its name due to the navigational dangers it presents to mariners.
As per USEIA data, 9.3% of global crude oil and petroleum liquids shipments were transported through this route in 2023. UN Conference on Trade and Development (UNCTAD) data suggests that 8.7% of global sea-borne trade by volume transited the Strait in 2023. As a crucial link between Asia and Europe, Bab-el-Mandeb, along with the Suez Canal and Suez-Mediterranean pipeline, is the third busiest maritime chokepoint in global energy trade, according to USEIA data.
On April 18, Hussein al-Ezzi, Deputy Foreign Minister of the Houthis in Yemen, in a social media post, threatened to block Bab-el-Mandeb if U.S. President Donald Trump did not cease hostilities in Iran. Though the Iran-backed Yemeni militant group has not acted on these threats, it has disrupted maritime traffic through the strait in the past. In response to the Israeli attack on Gaza in 2023, the group attacked several vessels passing through the Bab-el-Mandeb. Though the attacks subsided by late 2025, the traffic recovered only marginally by 2026.
Gooseberry Strait
Christened after the Malay name of the Indian Gooseberry tree, the Strait of Malacca is the shortest sea route connecting the Indian Ocean to the South China Sea and the Pacific Ocean. Stretching roughly 900 km, the Strait is just 2.8 km at its narrowest. Indonesia, Singapore, and Malaysia are its littoral states.
According to the UNCTAD, 24% of global maritime trade passed through this strait in 2023. 45% of global oil shipments, 26% of all cars traded internationally, and 23% of dry bulk cargo shipments use it each year. A majority of consumer and industrial goods from the manufacturing hubs of East and Southeast Asia rely on this route to reach the rest of the world.
Nearly all of East Asia is heavily dependent on the Malacca Strait to meet its energy needs. China, for example, relies on it for 75% of its oil needs. In 2003, the then-President of China, Hu Jintao, coined the term “Malacca Dilemma”, describing the strategic exposure the strait presents for China.
On April 22, the Indonesian Finance Minister floated the idea of imposing a levy on ships passing through the Malacca Strait. However, just a day later, Foreign Minister Sugiono backtracked on the idea and reinforced Indonesia’s commitment to freedom of navigation under international laws. Barring these statements, the strait has remained peaceful and has, in fact, never been formally closed in recorded history.
No alternatives
What makes Bab-el-Mandeb and Malacca strategically crucial is their geography. Though alternatives to both these routes exist, they either involve circuitous routes that increase shipping costs or are not suited for high-volume global traffic due to shallow depths or lack of infrastructure.
The Strait of Malacca, for instance, is home to the world’s second-busiest container port, the busiest container transshipment hub, and the world’s largest ship refueling hub in Singapore. While alternatives to Malacca, like Lombok and the Sunda Straits, do exist, they can potentially add from 1,000 to 1,500 nautical miles – around three to five extra days at sea. This results in higher fuel costs and loss of Singapore’s port infrastructure.
Similarly, for Bab-el-Mandeb, the only viable alternative is going through the Cape of Good Hope at the southern tip of Africa, which adds 10-14 days and approximately an additional $2 million to costs.
Professor Raja Mohan adds, “The scale of commerce that goes through these chokepoints is unprecedented. From stoves in our houses to world economies, everything depends on these chokepoints. It is very important that these trade routes remain operable.”
English (US) ·