[Current] Strait of Hormuz & oil blockade

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What is a Strait?

• A narrow body of water that joins two larger bodies of water 
• Strait of Hormuz is a narrow waterway between Iran and the Oman 
• It links the Persian Gulf with the Arabian Sea. 
• Almost One third of world's oil supply comes through this Strait. 

Narrowest point of this Strait if 54 kms wide.

then What is Isthmus?

• A narrow strip of land connecting two larger land areas. 
• ex.the Isthmus of Panama: connects North and South America.

Why the Strait of Hormuz is in news?

• There are talks of US imposing fresh sanctions on Iran oil industry.
• The West is concerned that Tehran might be planning to build nuclear weapons under the cover of its civil nuclear program.
• Iran has threatened to block oil deliveries through the Straits of Hormuz if sanctions are imposed. 
• U.S. has deployed the Fifth naval Fleet to prevent any such blockade. 
• Meanwhile,EU states have reached an agreement in principle to ban Iran’s oil exports.
• Consultations are continuing, but diplomats say the ban could come into force by January 30. 
• Such rumor-mongering and drama is going to increase the oil-barrel price in future.

India in this drama

• Iran is the fourth-largest oil producer in the world
• India is Iran's second largest client after China and absorbs about 20 percent of its crude exports. 
• India imports more than 300,000 barrels a day of crude oil from Iran. 
• India pays about $1 billion every month to Iran via Turkey.
• Obama signed a Bill into law late last month, empowering U.S. authorities to impose penalties on foreign banks dealing with the Central Bank of Iran to settle oil import payments. 
• India fears that Turkey might come under the US pressure after a fresh round of sanctions are imposed on Iran. 
• So, India is exploring all options to find a way out to make oil payments to Iran. (Critical at the time of State elections, a petrol-price increase could reverse the prospects of ruling party's victory!)