The closure of the Strait of Hormuz continues to reshape global energy markets, highlighting the vulnerability of key maritime chokepoints. The waterway, which carries about 20% of global petroleum liquids, remains a critical route for major Gulf exporters, including Saudi Arabia, the UAE, Kuwait, and Iraq. Disruptions since late February 2026 have pushed crude prices to around US$120 per barrel, reflecting supply chain instability.

Energy markets have shown sharp price volatility, with rising fuel costs prompting government interventions and conservation measures. The crisis has exceeded expectations, as supply disruptions and uncertainty over reopening timelines drive market recalibrations.

Alternative transport routes, including pipelines and longer maritime paths such as the Cape of Good Hope, face capacity limits and higher costs. Producer responses have also been constrained, with OPEC+ output increases covering less than 2% of the disrupted supply.

Regions dependent on Gulf energy, particularly in the Asia-Pacific, face higher exposure, while industries such as petrochemicals and transportation remain especially vulnerable to sustained disruptions.