Strait of Hormuz disruption hits energy, fertilizer and industrial trade
Disruptions in the Strait of Hormuz have caused a sharp decline in global exports of energy, fertilizers, and industrial products. Data shows a 95 percent drop in natural gas exports, highlighting the vulnerability of global trade to maritime chokepoints.
Why it matters
The reliance on a single maritime route for critical commodities creates significant economic instability and price volatility for global markets.
Disruption in the Strait of Hormuz has exposed the vulnerability of global trade to a single maritime chokepoint, with early data showing sharp falls in exports of energy, fertilizers and industrial products.
Exports of natural gas dropped by a staggering 95 per cent .
The finding comes in analysis published by the International Trade Centre (ITC), a multilateral agency that has a joint mandate with the World Trade Organization (WTO) and UN trade and development body UNCTAD .
The Strait, located south of Iran, is responsible for around one quarter of global seaborne oil trade and a significant share of liquefied natural gas flows and fertilizers, including a third of globally traded urea.
Since the military escalation in late February , reduced commercial passage, concerns over navigational safety and higher transport and insurance costs have affected trade flows far beyond the region .
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