Strait of Hormuz Disruption Reduces Energy and Industrial Trade

Strait of Hormuz Disruption Reduces Energy and Industrial Trade

Global: Disruptions to shipping through the Strait of Hormuz have reduced global trade in energy, fertilisers and industrial products, according to an update from the International Trade Centre (ITC). The strait accounts for around one-quarter of global seaborne oil trade and a significant share of liquefied natural gas (LNG) and fertiliser shipments, including approximately one-third of globally traded urea. Since military escalation began in late February, reduced commercial shipping, higher transport and insurance costs, and navigational safety concerns have affected international trade flows. Combined merchandise exports from Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates declined by 21% in value in April 2026 compared with the previous year.

Export volumes across 12 strategic products fell by 54% between April 2025 and April 2026, with LNG exports declining by 95%, followed by urea (83%), methanol (80%) and ammonia (75%). Crude oil exports recorded the largest volume decline, falling by 28 million tonnes, while refined petroleum products and LNG declined by 7.3 million tonnes and 5.5 million tonnes respectively. The report also found that although alternative suppliers increased shipments for most of the selected products, these increases fully offset supply disruptions only for ammonia and polypropylene, indicating that inventories, strategic reserves, domestic production and reduced consumption continued to play a role in meeting demand.

Source: United Nations News