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Oil prices were little changed Tuesday as negotiations continued over how to manage vessel traffic through the Strait of Hormuz, the narrow passage at the mouth of the Persian Gulf through which a large share of the world's seaborne crude moves by ship.
President Donald Trump told Fox News late that evening that the talks had lasted all day. "It looks like things are very good," he said. What the strait means for oil markets The Strait of Hormuz is a chokepoint.
Ships carrying crude out of the Persian Gulf have no practical alternative route, which is why markets pay close attention to anything that touches that passage.
The term "chokepoint" has a precise meaning in energy: a single corridor where, if traffic is blocked, supply cannot be rerouted without significant disruption.
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