Why is the Strait of Hormuz off Iran so crucial?

The Strait of Hormuz is considered the world's most critical chokepoint for the oil trade. Iran has repeatedly threatened to block the waterway and now is partially closing it for military drills. The Strait of Hormuz is considered the world's most critical chokepoint for the oil trade. Iran has repeatedly threatened to block the waterway and now is partially closing it for military drills.