While Iran could disrupt the Strait of Hormuz through attacks on oil tankers, it's not clear how it could close the waterway — or if it has the capacity to do so. The Strait of Hormuz remains open.

A short-term Strait of Hormuz closure could add $8.25-$31.25 to the cost of a barrel of oil, according to ClearView Energy Partners. Threatening to close the Strait thus boosts Iran's energy earnings.

China, the largest buyer of Iranian oil, sourced 5.4 million barrels per day through the Strait of Hormuz in the first quarter this year, while India and South Korea imported 2.1 million and 1.7 ...

What is the Strait of Hormuz? The Strait is narrow, stretching roughly 31 miles at its widest point. Iran is on its north bank opposite Oman and the United Arab Emirates (UAE).

Now, concerns over the Strait of Hormuz are once again at an all-time high. Iran controls the Northern side of the Strait of Hormuz, a passage which sees significant global trade pass through daily.