Hormuz Disruption Slams Global Trade by 54% Amid Energy, Fertilizer Shortages

The Strait of Hormuz disruption has highlighted the vulnerability of global trade to maritime chokepoints. According to an analysis by the International Trade Centre, exports of energy, fertilizers, and industrial products have fallen sharply since late February.

Data for April shows a 21% decline in value for combined merchandise exports from Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. The ITC noted that export values are affected by changes in commodity prices triggered by the disruption, but physical quantities provide complementary evidence on trade flows.

The analysis found a 54% decline in combined export volumes across 12 strategically important products. Liquified natural gas saw the steepest contraction at 95%, followed by urea (83%), methanol (80%), and ammonia (75%).