Hormuz Disruptions Slam Global Energy and Industrial Trade

The Strait of Hormuz, a critical waterway for global trade, has experienced disruptions that have significantly reduced the flow of energy and industrial products. The International Trade Centre (ITC) reports that since military escalation began in late February, commercial shipping through the strait has decreased, leading to higher transport costs and safety concerns.

The Strait accounts for approximately one-quarter of global seaborne oil trade and a significant share of liquefied natural gas (LNG) and fertiliser shipments. According to the ITC, export volumes across 12 strategic products fell by 54% between April 2025 and April 2026, with LNG exports declining by 95%, followed by urea (83%), methanol (80%), and ammonia (75%).

Combined merchandise exports from Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates declined by 21% in value in April 2026 compared with the previous year. Crude oil exports recorded the largest volume decline, falling by 28 million tonnes, while refined petroleum products and LNG declined by 7.3 million tonnes and 5.5 million tonnes respectively.