Strait of Hormuz Crisis Puts Global Energy and Trade at Risk as Shipping Traffic Remains Disrupted

The Strait of Hormuz, a narrow maritime passage connecting the Persian Gulf with the Gulf of Oman, remains at the center of a global energy and shipping crisis, with disruptions threatening oil supplies, fertilizer markets and international trade.

The strategic waterway normally handles an enormous share of the world’s seaborne energy trade. According to UN Trade and Development (UNCTAD), around 25% of global seaborne oil trade passes through the Strait of Hormuz under normal conditions. The International Energy Agency estimates that approximately 20 million barrels of crude oil and petroleum products per day were shipped through the strait in 2025.

The ongoing disruption has therefore created consequences far beyond the Middle East, affecting energy prices, shipping costs, supply chains and economies that depend heavily on imported fuel.

One of the World’s Most Important Trade Chokepoints

The Strait of Hormuz is only about 29 nautical miles wide at its narrowest point, with designated shipping channels for vessels entering and leaving the Persian Gulf.

Despite its relatively small size, its economic importance is enormous. UNCTAD estimates that the waterway carried roughly one-quarter of global seaborne oil trade before the current disruption. It also handles substantial volumes of liquefied natural gas, liquefied petroleum gas and fertilizer-related commodities.

This concentration makes the strait particularly sensitive to security problems. When ships are unable or unwilling to use the route, alternative export options are limited for several major energy-producing countries.

Ship Traffic Has Fallen Sharply

The latest shipping data show that commercial traffic remains far below normal levels.

On Wednesday, August 26, Kpler data recorded 10 visible commodity-vessel transits through the Strait of Hormuz, compared with a 10-day moving average of approximately 15 vessels. The figures include vessels entering and leaving the waterway, although ships travelling with their tracking systems switched off may not appear in the data.

Earlier in August, traffic fell to single-digit levels on some days, highlighting the continuing uncertainty facing ship operators.

Oil Flows Have Been Hit

The disruption has affected the movement of crude oil and other petroleum products. Reuters reported that oil flows through the strait had fallen substantially from the levels recorded before the conflict.

Before the war began, approximately 20 million barrels of oil per day moved through Hormuz. Recent ship-tracking data showed flows at much lower levels, increasing pressure on producers, traders and importers.

The consequences are not limited to countries located near the Persian Gulf. Energy-importing economies in Asia and elsewhere can face higher costs when supplies become harder and more expensive to transport.

LNG and Fertilizer Supplies Also Vulnerable

Oil is not the only commodity affected.

UNCTAD says the Strait carries significant quantities of liquefied natural gas and fertilizers, meaning disruption can spread into electricity markets, industrial production and agriculture.

An International Trade Centre analysis reported that LNG exports from Hormuz-dependent economies fell by approximately 95% in April 2026 compared with April 2025. Urea exports declined by 83%, while ammonia exports fell by 75% during the same comparison period.

Such declines can create secondary effects because fertilizers are essential inputs for agricultural production.

Developing Economies Face Added Pressure

The economic impact can be particularly severe for developing countries that have limited financial room to absorb higher energy and transportation costs.

UNCTAD has warned that increased fuel, freight and food costs can put additional pressure on household budgets and government finances. The organization has also highlighted the vulnerability of countries already facing heavy debt burdens.

Higher energy prices can eventually affect transportation, manufacturing, electricity generation and the prices consumers pay for everyday products.

Oil Markets Closely Watching Diplomatic Talks

Financial markets are closely monitoring diplomatic efforts surrounding the waterway.

Iran and Oman have been discussing arrangements intended to facilitate shipping through the strait. Recent talks have raised hopes of improving navigation, although the details and long-term implementation remain uncertain.

Oil prices have responded to changing expectations. On August 25, Brent crude settled at $87.84 per barrel, while West Texas Intermediate settled at $82.23, with traders weighing the possibility of improved shipping conditions against continuing geopolitical risks.

Why the Crisis Matters to the World

The importance of Hormuz lies in its role as a global bottleneck. A disruption in one relatively narrow maritime corridor can affect multiple sectors simultaneously.

Less shipping capacity can mean higher freight costs. Reduced energy supplies can push up fuel prices. Higher fertilizer costs can increase agricultural expenses, while more expensive transportation can feed into the prices of manufactured goods.

UNCTAD has described the disruption as a shock that can spread through energy markets, maritime transportation and global supply chains.

Global Statistics at a Glance

• Share of global seaborne oil trade through Hormuz: about 25%
• Average oil shipped through the strait in 2025: about 20 million barrels per day
• Narrowest width of the strait: about 29 nautical miles
• Visible commodity vessels on August 26: 10
• 10-day moving average: about 15 vessels
• LNG export decline in April 2026: about 95%
• Urea export decline in April 2026: about 83%
• Ammonia export decline in April 2026: about 75%

The latest figures demonstrate why the Strait of Hormuz is more than a regional shipping route. Its stability is closely linked to global energy security, food production, transportation costs and international trade. With diplomatic negotiations continuing and vessel movements still well below normal levels, markets around the world remain highly sensitive to developments in the waterway.