Strait of Hormuz disruption is sending shockwaves across global trade as ship transits collapse and energy markets react sharply. The report warns that rising freight costs, fuel prices and insurance premiums could amplify economic pressures, particularly for developing economies.
Strait of Hormuz disruption is creating major risks for global trade as escalating geopolitical tensions halt shipping flows through one of the world’s most critical maritime chokepoints. The narrow waterway carries around a quarter of global seaborne oil trade along with large volumes of LNG and fertilizers, making it a vital corridor for international energy markets and supply chains.
The report shows that ship transits through the Strait have dropped dramatically in recent days, with daily traffic falling by nearly 97% compared with typical levels earlier in February. Energy markets have reacted quickly, with oil and gas prices rising sharply while freight rates for oil tankers surge. Insurance premiums for vessels operating in the region are also climbing rapidly, significantly increasing shipping costs.
The disruption could have wide economic consequences, particularly for developing countries that rely heavily on imported energy, fertilizers and food.
