Hormuz Disruption Causes 95% Drop in Global LNG Exports

The Strait of Hormuz has caused significant disruptions to global trade in energy, fertilizers, and industrial products. Exports of natural gas dropped by a staggering 95% due to reduced commercial passage and concerns over navigational safety.

Since the military escalation in late February, shipping traffic through the Strait remains far below normal levels, affecting economies that rely heavily on it for exports. The International Trade Centre (ITC) analyzed trade data from April and found a 21% decline in value for combined merchandise exports across all products from Hormuz-dependent economies.

The ITC analysis focused on 12 strategically important energy, fertilizer, and industrial products. Export volumes fell significantly across all products, with liquified natural gas recording the steepest contraction at 95%. Urea exports declined by 83%, followed by methanol (80%) and ammonia (75%).

Importing markets were not affected in the same way, depending on factors such as reliance on Hormuz suppliers, access to inventories and strategic reserves, domestic demand, and ability to source from alternative suppliers. Japan, for example, historically sourced 91% of its crude petroleum oil imports from Hormuz-dependent economies.