The Emirati national guard says it has evacuated 24 people from an oil tanker after a collision between two ships just east of the world’s most critical oil chokepoint, the Strait of Hormuz.

The Strait of Hormuz is considered the world's most important gateway for oil transport. Hostilities between Iran and Israel have raised fears that shipping and crude flows through the narrow waterway may now slow down.

Two giant ocean-going tankers collided and caught fire near the Strait of Hormuz energy chokepoint, rattling global oil and shipping markets that have been on high alert since Israel attacked Iran.

The Strait of Hormuz is both a vital passage point and a permanent point of tension. As long as the world depends on Oil from the Persian Gulf, its security will remain a major geostrategic concern. If Iran were to cross the red line, the consequences would not be limited to barrels of Oil, but the global economic balance could be shaken.

As the conflict escalates, container shipping faces growing risks from a potential chokepoint closure, rising insurance costs and surcharges from major carriers.

Strait of Hormuz is used for exporting crude oil to Asia by members of OPEC including Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq

While Tehran has frequently threatened to block the waterway in response to military pressure or sanctions, the prospect becomes far more plausible if the conflict with Israel explodes into a full-scale war.

The risk of Iran closing the Strait of Hormuz is real and could disrupt 20% of global oil supply. Click here for more information on Market Outlook.

Iran is seriously considering closing the strategic Strait of Hormuz after launching missile attacks on Israel, threatening a key route for oil, gas supplies.