Hormuz Disruptions Cut Strategic Exports by 54 Percent

Military escalation in late February led to severe trade disruptions in the Strait of Hormuz, resulting in sharp declines in the export of energy, fertilizers, and industrial products. An analysis by the International Trade Centre reveals that combined export volumes for 12 strategic products from Hormuz-dependent economies—including Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates—plummeted by 54 percent between April 2025 and April 2026.

Liquefied natural gas experienced the most significant contraction, falling by 95 percent, while crude petroleum oil exports decreased by 28 million tonnes. These declines severely impacted global supply chains, leading to a 64 percent drop in total imports for Japan and similar shortages in Malaysia and the Republic of Korea. Some markets, such as Thailand, responded by increasing shipments from alternative suppliers to mitigate the impact.

Despite recent lulls in active fighting, maritime traffic remains significantly below normal levels. Navigational safety concerns and elevated insurance costs continue to deter commercial shipping in the region.