How could an oil crisis happen? The United States gets some oil from domestic sources, including Texas and Alaska, and most of its imported oil comes from nearby the countries of Canada, Mexico, and Venezuela. However, the largest suppliers of oil worldwide are the nations in the Middle East, which have the overwhelming majority of the globe’s proven reserves. Most of the oil from the Middle East—one fifth of the world’s supply—must travel on large tankers through the Persian Gulf and into the Strait of Hormuz, before it can reach the open waters of the Indian Ocean. All it would take to cause a crisis is for a country, such as Iran, to block off the small, but highly strategic Strait of Hormuz.

Use your mouse to trace the shipping route of the Persian Gulf to the Strait of Hormuz on the map below.

Notice how narrow the Strait of Hormuz is. This is an excellent example of the strategic importance of geography. It would not take much effort for the Iranian or the Omani navy to close the passageway and cause great damage to the global economy, by potentially causing the price of oil to double almost overnight. Its significance is one reason the United States keeps part of its navy in the region.

This is a map of the Strait of Hormuz. Ships in that narrow strait can barely pass each other and sometimes they crash. If you click on the following link, you can read a short article about a U.S. nuclear submarine and Navy ship that crashed just last year.
2 Navy Vessels Collide in Strait of Hormuz