Strait of Hormuz
Meaning
The Strait of Hormuz is the narrow passage between the Arabian Gulf and the Gulf of Oman through which most Middle East crude exports pass.
Also written as Hormuz
Strait of Hormuz explained
Every voyage from ports inside the Gulf, such as Ras Tanura or Basrah, passes Hormuz. Tension in the area raises war risk premiums, while Fujairah and other terminals outside the strait offer an alternative.
Related terms
MEG
MEG (Middle East Gulf), also written AG (Arabian Gulf), is the market name for the Persian Gulf load region, the largest source of seaborne crude.
TD3C
TD3C is the Baltic Exchange benchmark VLCC route for a 270,000-tonne crude cargo from Ras Tanura, Saudi Arabia, to Ningbo, China.
JWC listed areas
JWC listed areas are the sea areas the London market's Joint War Committee considers high risk for war, piracy or terrorism, triggering extra premiums.