The Strait of Hormuz is not merely a narrow waterway between the Persian Gulf and the Sea of Oman; it is a vital artery of the global economy and a point where energy, politics, and international security converge. Maritime trade data for 2024 show that the world’s dependence on this strategic passage extends far beyond crude oil, encompassing a wide range of critical goods.
According to available statistics, roughly 35 percent of global crude oil trade, equivalent to nearly 20 million barrels per day and about 20 percent of global oil consumption, passes through the Strait of Hormuz. This figure alone demonstrates that any disruption, even short-lived, could trigger price shocks and widespread instability in global energy markets.
However, Hormuz’s importance is not limited to oil. Twenty-six percent of global condensate trade, 20 percent of LNG trade, and more than 15 percent of chemical products, fertilizers, and petrochemical products also depend on this strait. Even items such as foodstuffs, petroleum coke, cement, and basic industrial products rely significantly on Hormuz for their maritime trade, an issue that further underscores the strait’s role in global food and industrial security.
The countries along the Persian Gulf, which include five core members of OPEC, together account for nearly one-third of global oil production. The Middle East’s share of global oil production stood at around 31 percent last year, and forecasts indicate that this share will rise to about 40 percent by 2050. In other words, the world’s dependence on energy flowing through Hormuz will not diminish; it will deepen.
From a macro-trade perspective, the Middle East has, over the past two decades, evolved from a regional player into a three-trillion-dollar trade hub. Energy exports remain the backbone of the economies of key countries in the region: 75 percent of Saudi Arabia’s and Oman’s exports, and more than half of the UAE’s exports, depend on energy. This structure explains the global economy’s high vulnerability to geopolitical tensions in this region.
Under these conditions, any escalation of tensions between Iran and the United States, or any scenario involving military conflict, would not be merely a bilateral crisis. Disruption in the Strait of Hormuz would rapidly put pressure on Persian Gulf exports, global supply chains, energy prices, food prices, and even financial markets. This is why stability in the Middle East is, in practice, regarded as equivalent to stability in the global economy and the “security of the world’s pocket.”
NOURNEWS