Hormuz Disruption Reshapes Global Energy Markets
The disruption of the Strait of Hormuz has led to one of the most significant shifts in global energy markets in decades. The conflict, which began on February 28 with Israeli and US strikes on Iran, effectively halted traffic through the strategic waterway, where a quarter of the world's seaborne oil trade and almost a fifth of global liquefied natural gas trade normally passes.
According to the International Energy Agency (IEA), in 2025, around 20 million barrels per day of crude oil and petroleum products moved through the Strait. The relatively controlled response of energy prices should not be mistaken for a return to normal conditions, as an extraordinary combination of emergency measures has held the market together.
These included the largest coordinated release of oil reserves in IEA history, increased US oil and gas exports, rerouting Gulf energy supplies, and sharp reductions in Chinese and Japanese demand. Brent crude traded at around $70 a barrel before the war, but rose to $145 a barrel at its height. Prices later retreated, reaching roughly $90 by the end of August.