US Strait Blockade Triggers Global Energy Crisis

The Strait of Hormuz has been at the center of a global energy crisis after a US naval blockade was reinstated in July 2026. The strait, which connects the Arabian Peninsula to Iran and is used by approximately 20-21 million barrels of oil equivalent per day, has become a critical chokepoint for global hydrocarbon trade.

The blockade, initially imposed in mid-April 2026, was lifted in mid-June following a ceasefire agreement between the US and Iran. However, the agreement collapsed after just weeks, leading to renewed military confrontation and the reinstatement of the naval blockade on July 14, 2026.

According to Goldman Sachs, expanded pipeline infrastructure bypassing the strait could protect more than 60% of pre-war Gulf oil exports by the end of 2028. However, this would offer little relief during a crisis occurring in 2026, highlighting the strait's structural irreplacability.