The key arteries of the energy world
The Strait of Hormuz crisis highlights how key waterways can become global chokepoints
Where there is no access to pipelines, oil is predominantly shipped by sea. In the case of LNG, 100% of production reaches its destination via maritime transport. The recent hostilities in the Gulf have brought to the fore the economic significance of the Strait of Hormuz, when closure of the waterway turned it into a chokepoint overnight. Asia is particularly hard hit because 90% of oil and LNG leaving Hormuz has Asian countries as their destination. The rest of the world will feel the ramifications via rising oil and gas prices and inflationary pressures. Around 20% of crude oil and petroleum products depend on the strait to reach their markets, as does 20% of LNG and 30% of nitrogen-based
Also in this section
14 April 2026
The GECF has warned it may revise its projections for demand this year downwards in light of conflict in the Middle East, although it maintains its forecasts for 2027 and onwards
13 April 2026
Petroleum Economist analysis highlights sharp shift from crude oversupply to market deficit, with Iraq and Kuwait badly affected and key producers Saudi Arabia and the UAE also seeing output sharply lower
13 April 2026
Turkmenistan is moving ahead with a modest expansion of the giant Galkynysh field to sustain gas deliveries abroad, but persistent delays to other key pipeline projects and geopolitical risks continue to constrain its export ambitions
13 April 2026
Expensive electricity has forced out swathes of energy-intensive industry and now threatens the country’s ability to attract future investment in datacentres and the digital economy
