The Emirati national guard says it has evacuated 24 people from an oil tanker after a collision between two ships just east of the world’s most critical oil chokepoint, the Strait of Hormuz.

The Strait of Hormuz is considered the world's most important gateway for oil transport. Hostilities between Iran and Israel have raised fears that shipping and crude flows through the narrow waterway may now slow down.

Two giant ocean-going tankers collided and caught fire near the Strait of Hormuz energy chokepoint, rattling global oil and shipping markets that have been on high alert since Israel attacked Iran.

As the conflict escalates, container shipping faces growing risks from a potential chokepoint closure, rising insurance costs and surcharges from major carriers.

Strait of Hormuz is used for exporting crude oil to Asia by members of OPEC including Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq

While Tehran has frequently threatened to block the waterway in response to military pressure or sanctions, the prospect becomes far more plausible if the conflict with Israel explodes into a full-scale war.

A tanker collision near the Strait of Hormuz has triggered market jitters over oil supply, with potential ripple effects for India's energy security and inflation outlook

The risk of Iran closing the Strait of Hormuz is real and could disrupt 20% of global oil supply. Click here for more information on Market Outlook.

There are reports that a few shipping lines may be reassessing routes, particularly the choke point of the Strait of Hormuz, given the heightened threat in the region. This could further add to the transportation cost to and from the region.