Hormuz Disruptions Slam Global Trade, LNG Exports Plummet 95%

The Strait of Hormuz has exposed the vulnerability of global trade to critical maritime chokepoints. Disruptions to shipping through the waterway have led to steep declines in exports, with natural gas being hit particularly hard at a 95% contraction.

The International Trade Centre (ITC) published an analysis that highlights the impact on global supply chains. The study focuses on 12 strategically important energy, fertilizer, and industrial products for which Hormuz-dependent economies are major global suppliers. These include Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates.

The ITC noted that trade data reveals a combined merchandise export decline of 21% in value across all products from these economies. The agency emphasized that changes in physical quantities provide evidence on the extent of disruption to actual trade flows.