Hormuz Crisis: Global Energy Markets in the Balance

The Strait of Hormuz oil flows crisis has put global energy markets to the test. Approximately 20 million barrels per day (bpd) of crude oil, condensate, liquefied natural gas, and refined petroleum products transit this narrow waterway, representing roughly 25% of all global seaborne oil trade.

The Strait's destination profile is unique in that approximately 84% of crude oil and condensate transiting Hormuz flows toward Asian markets. A prolonged closure would not merely inconvenience the Middle East's producers but rewires the energy economics of the entire Asia-Pacific region, with consequences for global LNG supply chains.

China, India, South Korea, Japan, Europe, and the United States all have varying levels of exposure to this crisis. The UAE is an exception, having restored its production levels as early as June 2026 through a sophisticated multi-channel export strategy that bypassed Hormuz entirely.