Mark Gagnon

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So in 1908, a British prospector named William Knox Darcy struck oil in southwestern Persia, which is, again, modern-day Iran.

It was the first major oil discovery in the Middle East, and it would basically transform the entire region, the global economy, and really the strategic importance of this waterway.

And it changed it in ways that no one could have ever imagined.

So the discovery led to the creation of the Anglo-Persian Oil Company, which would later become BP.

And in 1913, the British government had taken a controlling stake in the company and the Royal Navy had begun converting its fleet from coal to oil.

That single decision made the Persian Gulf one of the most strategically important bodies of water on the planet.

Just immediately, overnight, because Britain's ability to project military power now depended directly on a steady supply of Gulf oil passing through the Strait of Hormuz.

And then the discoveries kept on coming.

Bahrain in 1932, Saudi Arabia and Kuwait in 38, Qatar in 1940, Abu Dhabi in 58.

One by one, the states around the Persian Gulf turned out to be sitting on billions of dollars of crude oil and natural gas.

And by the mid 20th century, the Persian Gulf region contained more proven oil reserves than anywhere else on the planet.

Literally, the whole world's oil is found in these few countries.

And if you wanted to move it around, you had to go through the Strait of Hormuz.

So sure, you could own the oil or you could own the passageway and take a little piece of all of it.

Now, the number is almost hard to comprehend.

By the early 2000s, roughly like 17 to 21 million barrels of oil were transiting the Strait every day.

Approximately 20 to 21 percent of the world's total oil consumption decreased.