Hormuz Crisis Exposes Global Energy Security Risks

The Strait of Hormuz crisis has exposed the vulnerability of global energy security to shipping disruptions. In the fourth quarter of 2025, around 21 million barrels of oil a day passed through the strait, including roughly 16 million barrels of crude and 5 million barrels of refined petroleum products.

McKinsey Global Institute estimates that about 14% of global oil and gas supply was affected at the peak of the crisis. This disruption is more than twice the size of the major oil shocks of the 1970s and nearly six times larger than the disruption caused by the Russia-Ukraine conflict in 2022.

The crisis showed that energy security is not just about crude oil and gas availability, but also about the safety of routes carrying them. A disruption can spread beyond its location, affecting freight, inventory planning, and fuel markets elsewhere.