This is how Strait of Hormuz shock is forcing a global trade reset

This is how Strait of Hormuz shock is forcing a global trade reset

The Iran war has laid bare a fundamental reality: 20 per cent of global energy trade cannot afford to rely on a single artery.

Hormuz wake-up call and why this crisis is forcing a rethink on energy access

(By Oil & Gas 360) – The global energy system is being tested in real time, and the response is starting to shift from reaction to coordination. More than 40 countries have begun discussions on how to reopen the Strait of Hormuz following Iran’s blockade, a move that has effectively choked off one of the world’s most critical energy corridors. The urgency reflects the scale of the disruption: roughly 20% of global oil and LNG flows pass through t

Global Disruption at the Strait of Hormuz

(click to enlarge) After the Iranian blockade of the Strait of Hormuz, traffic fell to an average of just six ships per day, compared with around 129 per day before the conflict began. Because the strait normally handles roughly one quarter of global seaborne oil trade, as well as major shipments of liquefied natural gas and fertilizers, the most immediate effect of the disruption was a sharp rise in energy prices. Insurance premiums and tanker …

Iran’s Strait of Hormuz Disruptions Reshape Global Trade & Inflation

The Strait of Hormuz remains a pressure point where Iran’s war with Israel and Houthi attacks on Red Sea shipping have halved commercial traffic, forcing traders to reroute cargo around the Cape of Good Hope. Each diverted voyage adds $1m to $2m in freight costs and a week to transit times, a structural shift that TS Lombard argues will leave permanent scars on supply chains regardless of how the… Source