Summary
The Strait of Hormuz crisis is disrupting global energy and shipping, halting traffic through one of the world’s most important supply chain chokepoints. Energy and supply chains are tightening in real time. Here’s how that disruption can impact fuel, food, and essentials—and how to prepare.
Key Takeaways
- Commercial shipping through the Strait of Hormuz has slowed to a near halt, with vessels stranded or refusing transit.
- Shipping routes are being slowed or diverted, stranding cargo and extending transit times by 1-2 weeks.
- Maritime insurers are canceling war-risk coverage in the region.
- Qatar—responsible for roughly 20% of global LNG exports—has halted production and declared force majeure on shipments.
- Energy volatility and shipping delays can quickly affect fuel, food, and essential goods.
What Is Happening in the Strait of Hormuz Right Now?
The Strait of Hormuz is a naturally formed waterway between the Persian Gulf and the Gulf of Oman that connects the two Gulfs with the open ocean.
And it’s one of the most critical choke points in the global economy.
Roughly 13 million barrels per day passed through it in 2025, representing about 31% of all seaborne crude flows.[1]
It’s not just oil.
The route also carries about one-fifth of global liquid natural gas (LNG) shipments and roughly one-third of global trade in fertilizer.
That’s why all eyes are watching it closely.
Earlier this week, shipping giants suspended or restricted transit through the strait. Vessels are rerouting around Africa. Insurers are raising rates or rewriting coverage altogether.
Since then, maritime traffic through the corridor has slowed to a near-total halt, with only a handful of commercial vessels attempting the passage
When cargo slows, prices move.
Energy jumps first. Then shipping costs. Then the ripple hits everything else.
This isn’t speculation.
The disruption is already visible in global shipping and energy markets.
Which Countries Export Oil through the Strait of Hormuz?
According to data from the U.S. Energy Information Administration from Q1 2025, Saudi Arabia accounts for the largest share of crude and condensate exports transiting the strait, at 37.2% of the total.[2]
Others include:
- Iraq – 22.8%
- United Arab Emirates – 12.9%
- Iran – 10.6%
- Kuwait – 10.1%
The above 5 countries account for 93.6% of all crude and condensate volumes moving through the strait.[2]
According to the U.S. Energy Information Administration, “Saudi Arabia and the UAE have some infrastructure in place that can bypass the Strait of Hormuz, which may somewhat mitigate any transit disruptions through the strait. [...] We estimate that about 2.6 million b/d of capacity from the Saudi and UAE pipelines could be available to bypass the Strait of Hormuz in the event of a supply disruption.”[3]
Which Countries Rely Most on Oil from the Strait of Hormuz?
Nearly 90% of the crude oil and condensate that passes through this narrow waterway ends up in Asia.[2]
China is by far the largest destination, taking in more than a third of all crude and condensate volumes (37.7%) moving through the strait.
India follows at 14.7%, while South Korea and Japan—both heavily dependent on imported energy—account for 12.0% and 10.9%, respectively.
Other Asian economies collectively make up another 13.9%.
The United States receives just 2.5% of these flows.[2]
But make no mistake: while the direct dependence is concentrated in Asia, global oil markets are interconnected.
If traffic through the Strait of Hormuz slows or stops, the heaviest immediate pressure would fall on China and India, which together absorb more than half of all volumes passing through this corridor.
And when the world’s largest energy importers feel pressure, the ripple effects rarely stay contained.
Natural Gas and the Strait of Hormuz
Oil isn’t the only energy source moving through the Strait of Hormuz.
According to Kpler, about 20% of global liquefied natural gas (LNG) exports that come from the Persian Gulf—primarily originating in Qatar.[3]
LNG is a type of natural gas that is super cooled at minus 260 degrees Fahrenheit into a liquid state and loaded on tankers for transport around the world.
Once it reaches its destination, it’s returned to a gaseous state and is used “to heat homes and businesses, run highly-efficient electric power plants, manufacture chemicals and fertilizers, and fuel trucks, locomotives, cruise ships, and cargo vessels.”[4]
Qatar is one of the world’s largest providers of LNG.
On March 2, Iranian drone strikes hit energy infrastructure near Ras Laffan Industrial City, home to the world’s largest LNG export terminal.
In response, QatarEnergy halted production and later declared force majeure on LNG shipments, meaning it cannot meet export obligations due to the conflict.[5]
The shutdown is expected to last weeks at minimum, and potentially a month or longer before production returns to normal levels.
Even after operations restart, LNG facilities must be brought back online gradually to avoid damaging equipment, meaning global gas supplies could remain constrained well beyond the immediate conflict window.
Because most of Qatar’s LNG exports go to Asian markets—including China, Japan, India, and South Korea—the disruption is already tightening global gas markets and pushing energy prices higher.
Shipping Has Come to a Standstill
On Monday, Iranian state media reported that a senior commander in the Revolutionary Guard declared the Strait of Hormuz closed and warned that any vessel attempting to pass through would be set on fire.
While Iran cannot formally seal the waterway, the threat alone has been enough to alter shipping behavior.
According to NBC News, “Many major shipping and logistics companies have restricted or halted bookings through the region since the strikes on Iran began, including Maersk, MSC Group, CMA CGM, Hapag-Lloyd, COSCO and Emirates SkyCargo.”[6]
Danish shipping company Maersk announced it would suspend all vessel crossings in the Strait of Hormuz until further notice.[7]
Other carriers have rerouted ships around the Cape of Good Hope—adding 1 to 2 weeks to transit times, which significantly increases fuel consumption and substantially raises transportation costs.
The disruption is already visible in shipping data.
Dry bulk vessel transits through the Strait are down roughly 91%, and about 280 bulk carriers are currently trapped inside the Persian Gulf, unable or unwilling to risk the passage.
And then there is stranded cargo.
An estimated 170 container ships, carrying approximately 450,000 TEU (twenty-foot equivalent units) of cargo, were en route to or from the Persian Gulf when the crisis erupted, leaving hundreds of millions of dollars' worth of goods in limbo.[8]
And to further complicate things, multiple maritime insurers—including Gard and Skuld, NorthStandard, the London P&I Club, and the American Club—announced cancellation of war-risk coverage for ships traveling in the Gulf region, effective March 5th.[9]
More than 80% of global goods move by sea.
When transit times stretch and vessels are pulled off normal routes, delays compound quickly across supply chains.
What This All Leads To
The immediate market reaction to the disruption has been a sharp increase in energy prices.
Despite strong domestic production, the U.S. remains exposed to global oil price fluctuations.
Oil is globally priced, so when supply tightens in one region, costs adjust everywhere.
At the same time, maritime logistics are slowing.
Rerouting ships around Africa can extend voyages by up to 2 weeks while increasing fuel consumption and freight costs.
Ships stranded or diverted effectively remove capacity from the global system.
That combination—higher energy costs and slower deliveries—creates immediate strain on manufacturers.
Many components rely on petrochemicals derived from oil and gas.
Analysts estimate that in a prolonged disruption scenario, petrochemical input costs could rise 15-25%, translating directly into higher prices for plastics, insulators, laminates, and other oil-derived materials.[8]
This can lead to…
- Production Delays: Manufacturers facing slowdowns and potential halts in production as they await the arrival of critical components.
- Inventory Shortages: Disruption can lead to tighter inventories and shortages of finished goods on store shelves.
- Rising Prices: The combination of increased shipping costs, component shortages, and production delays can put upward pressure on prices for a wide range of consumer goods.
Even if the conflict is quickly contained, the logistical mark remains.
Port congestion, shipping route restructuring, and the need to reconfigure supply chains can extend disruption well beyond the original crisis window.
High energy costs and constrained supply don’t just affect factories—they weigh on global demand, investment decisions, and economic growth.
How to Prepare for Energy-Driven Supply Chain Disruptions
Preparation isn’t about predicting the exact outcome of a conflict.
It’s about reducing your exposure to volatility.
When energy prices spike and shipping slows, disruptions usually show up in three places first:
Fuel. Food. Everyday essentials.
#1 Build a Buffer of Shelf-Stable Food
If transportation slows and freight costs rise, grocery prices follow.
Certain items disappear faster than others—especially products that rely heavily on packaging, plastics, fertilizers, or long-haul transport.
Focus on:
- Shelf-stable proteins
- Grains and legumes
- Long-term food designed for extended storage
A short-term pantry buffer absorbs price spikes. A longer-term emergency food reserve protects against prolonged disruption.
#2 Stock Up on Medicines
One of the most concerning issues are medications.
The next time you are at a big-box store, add the giant bottle of Tylenol to your cart.
Think back on the pandemic. What disappeared?
Stock up on first aid supplies, pain relievers, fever reducers, etc.
Don’t stop with first aid and medications. Think about what toiletries and other essentials are necessary for daily life, such as toothpaste.
Remember, if one component is hard to find, it will disrupt the entire chain.
#3 Stock Up on Essential Supplies
When shipping routes stretch by weeks and inventories tighten, stores don’t immediately go empty—they become inconsistent.
Common stress points include:
- Batteries
- Personal hygiene products
- Replacement parts
- Pet supplies
#4 Expect Fuel Volatility
Oil markets react quickly to instability in chokepoints like the Strait of Hormuz.
Even temporary spikes can push gasoline and diesel prices higher.
Practical steps include:
- Maintaining vehicles above half a tank
- Storing stabilized fuel safely where legal and appropriate
- Reducing dependency on frequent last-minute fuel purchases
#5 Think in Terms of Duration
Short disruptions create price volatility. Prolonged disruptions create inventory strain.
The difference between inconvenience and stress often comes down to how long instability lasts—and whether you prepared before it intensified.
The Strait of Hormuz may feel far away. But energy markets aren’t.
When energy tightens and shipping slows, households feel it—at the pump, at the store, and in the cost of everyday goods.
Remember, friends. You don’t control geopolitics…
But you control how you respond to it.
What’s the one gap in your plan you’re tightening right now—fuel, food, or essentials? Tell me in the comments.
In liberty,
Elizabeth Anderson
Preparedness Advisor, My Patriot Supply
Sources
[1] ASIS International.Strait of Hormuz Closure: What It Means for Global Security and Shipping.
Security Management Magazine, March 2026. https://www.asisonline.org/security-management-magazine/latest-news/today-in-security/2026/march/strait-of-hormuz-closure/
[2] Visual Capitalist.Charted: Oil Trade Through the Strait of Hormuz by Country.
2026. https://www.visualcapitalist.com/charted-oil-trade-through-the-strait-of-hormuz-by-country/
[3] Kpler.U.S.–Iran Conflict: Strait of Hormuz Crisis Reshapes Global Oil Markets.
2026. https://www.kpler.com/blog/us-iran-conflict-strait-of-hormuz-crisis-reshapes-global-oil-markets
[4] U.S. Department of Energy.Understanding Liquefied Natural Gas (LNG).
Office of Fossil Energy and Carbon Management, updated 2024. https://www.energy.gov/hgeo/understanding-liquefied-natural-gas-lng
[5] CNBC.Qatar’s State-Owned Energy Company Halts LNG Production After Iran Drone Attacks.
March 2, 2026. https://www.cnbc.com/2026/03/02/qatars-state-owned-energy-company-halts-lng-production-after-iran-drone-attacks.html
[6] NBC News.Iran–U.S. Conflict Chokes Key Shipping Lane and Threatens Global Cargo Industry.
March 2026. https://www.nbcnews.com/business/economy/iran-us-war-strait-hormuz-shipping-cargo-oil-rcna261410
[7] Maersk.Strait of Hormuz Emergency Freight Increase.
March 2, 2026. https://www.maersk.com/news/articles/2026/03/02/strait-of-hormuz-emergency-freight-increase
[8] TSTRONIC.The Impact of the USA–Israel–Iran Conflict on the Electronics Industry.
2026. https://tstronic.eu/en/the-impact-of-the-usa-israel-iran-conflict-on-the-electronics-industry/
[9] The Guardian.Maritime Insurers Cancel War-Risk Cover for Gulf Shipping Amid Iran Tensions.
March 2, 2026. https://www.theguardian.com/business/2026/mar/02/maritime-insurers-war-risk-cover-gulf-iran-shipping-strait-of-hormuz
