Strait of Hormuz Disruption Hits Energy, Fertiliser Trade Hard

The Strait of Hormuz has disrupted global trade for several products, including energy and industrial goods. The disruption, which began in late February, has resulted in a significant decline in exports from economies that rely heavily on the strategic waterway.

According to analysis by the International Trade Centre (ITC), a multilateral agency, exports of natural gas dropped by 95% in April compared to the same period last year. Urea exports declined by 83%, followed by methanol at 80% and ammonia at 75%. Polymers of propylene were the least affected, declining by 24%.

The ITC noted that the disruption has exposed the vulnerability of global trade to a single maritime chokepoint. The Strait of Hormuz is responsible for around one quarter of global seaborne oil trade and a significant share of liquefied natural gas flows and fertilisers.