Hormuz Disruption Exposes Global Trade Vulnerability

The Strait of Hormuz has exposed the vulnerability of global trade to a single maritime chokepoint, resulting in sharp falls in exports of energy, fertilizers, and industrial products.

According to analysis by the International Trade Centre (ITC), a multilateral agency with a joint mandate with the World Trade Organisation (WTO) and UN trade and development body UNCTAD, exports of natural gas dropped by 95 per cent in April compared to April 2025.

The disruption has affected not only oil prices but also trade flows far beyond the region, with reduced commercial passage and higher transport and insurance costs impacting global seaborne oil trade and liquefied natural gas flows.

Although recent lulls in fighting have raised hopes for a return to normal shipping levels, traffic remains significantly below normal. The analysis focuses on 12 strategically important energy, fertiliser, and industrial products for which Hormuz-dependent economies are key global suppliers.