Hormuz Disruption Slams Global Energy, Fertilizer Trade
The Strait of Hormuz has become a critical maritime corridor due to its significant share of global seaborne oil trade and liquefied natural gas flows, including a third of globally traded urea.
Analysis by the International Trade Centre (ITC) found that exports of natural gas dropped by 95% since the military escalation in late February. The disruption has also affected other strategically important energy, fertilizer, and industrial products.
The ITC looked at 12 key products for which Hormuz-dependent economies are global suppliers. These include Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates.
Export values across all these products declined by 21% in value in April, but export volumes fell even more sharply, with combined volumes declining by 54%. The steepest contraction was seen in liquefied natural gas, at a staggering 95%.