What is the Strait of Hormuz and why does it matter so much to the world economy?

I have been hearing about the Strait of Hormuz in the news and people around me are asking what it is and why it seems so important. Can you explain what the Strait of Hormuz is, where it is located, and why it is considered one of the most strategically critical waterways in the world? How much of the world's oil and energy supply passes through it, and what would happen to global energy prices and the world economy if the strait were ever blocked or disrupted? Which countries control or border it and why do tensions in that region tend to affect people far away including in Europe and Africa?