Strait of Hormuz Blockade Costs Oil Importers $330 Billion

Oil and gas importers have been hit hard by the six-month blockade of the Strait of Hormuz, resulting in overpaid costs of $330 billion compared to pre-war expectations. The analysis by the Center for Energy and Clean Air Research (CREA) reveals that the additional monthly costs incurred by importers due to the crisis averaged around $55.3 billion from March through August.

This is a significant blow, especially considering that these costs nearly equal the total global investment in renewable energy in 2025, which stood at about $58 billion. The military actions by the U.S. and Israel against Iran and the blockade of the Strait of Hormuz have caused the longest-lasting shock to the oil market since the Gulf War in 1990.

The prices for Asian liquefied natural gas (LNG) have risen by an average of 75% compared to pre-war forecasts, while European LNG has seen a 60% increase. Diesel and gasoline prices have also seen significant hikes, with diesel increasing by 59% and gasoline by 43%. Brent crude oil prices rose by 35%.

The poor countries were particularly hard hit, with their additional costs for fossil fuel imports averaging 1% of GDP. In absolute terms, the European Union incurred the highest additional costs at $78 billion, followed by China at $35 billion and India. The EU's net losses amounted to $54 billion, while those of East Asia totaled $49 billion.

However, four regions posted net profits thanks to high prices: the Middle East (+$61.2 billion), North America (+$47 billion), Russia (+$35.9 billion), and Latin America (+$4.9 billion). This crisis has served as a financial lifeline for Russia, sharply increasing its export revenues.