Hormuz Shutdown: Global Trade Brings to Standstill as Oil Prices Soar

The Strait of Hormuz has become the world's most critical energy chokepoint, but its closure due to US-Israel strikes on Iran has brought global trade to a standstill. In the six months since the strikes, only five ships have passed through the strait each day, down from 100 vessels daily.

The numbers paint a dire picture: a 95% reduction in traffic that has no modern precedent. Unlike other major chokepoints like the Suez Canal, which has an alternative route around the Cape of Good Hope, Hormuz has no maritime alternative, making it uniquely vulnerable to disruption.

As a result, countries heavily reliant on oil imports from the Middle East are shouldering the costs of price increases and supply disruptions. The inventory buffer built up before the war is now largely depleted, leaving the next six months looking increasingly volatile.