What is the Strait of Hormuz and why does it matter?

Iran is considering closing the key global oil shipping channel, the Strait of Hormuz, in retaliation for US actions on its nuclear facilities. This critical route in the Gulf sees about 20% of the world's oil and gas flow through it, impacting international trade and oil prices significantly. The closure could disrupt global economies, particularly hitting top importers like China, India, and Japan. While there are potential risks associated with closing the strait, experts believe the US and its allies would likely swiftly restore maritime traffic through military means if a blockade were attempted.