A major global chokepoint is now at a standstill — and the world is feeling the shock.
The near-complete closure of the Strait of Hormuz, one of the world’s most critical oil and LNG routes, has triggered a chain reaction across global markets. Over 20% of the world’s oil and up to 15% of global naphtha trade normally pass through this narrow waterway. With shipping disrupted, countries heavily dependent on Middle Eastern energy are now among the worst hit.
Top 15 Countries Most Affected
Countries most impacted include major Asian importers and Gulf exporters:
- India – One of the largest buyers of Gulf crude; immediate fuel price spikes reported.
- China – Supply delays and refinery disruptions affecting industrial output.
- Japan – Heavy reliance on Middle Eastern LNG makes power generation vulnerable.
- South Korea – Refining sector facing higher costs and shipping delays.
- Singapore – Asia’s trading and bunkering hub hit by regional supply tightness.
- Thailand – Energy import costs rising sharply, affecting inflation.
- Philippines – Transport and electricity sectors under pressure.
- Bangladesh – Fuel shortages causing long queues at stations.
- Pakistan – High dependency on imported petroleum products sparks further price volatility.
- Malaysia – Energy market volatility impacting manufacturing.
- Indonesia – Higher import bills adding strain to fiscal balance.
- Qatar – LNG exports rerouted or slowed; revenue impact felt.
- UAE – Crude shipments disrupted despite alternative pipelines.
- Saudi Arabia – Export delays and production challenges.
- Kuwait – Severe export bottlenecks as tankers remain on standby.
Global Ripple Effect
Oil prices have surged past $110 per barrel, increasing inflation risks worldwide. Fuel shortages, panic buying, and economic strain have been reported in several Asian countries. Meanwhile, Gulf exporters face revenue losses as tankers remain unable to sail.
International Response
The UK has called a 35-nation emergency meeting to discuss reopening and securing the waterway. Diplomatic pressure is mounting as nations warn the closure could trigger a broader global recession if not resolved soon.
