The closure of the Strait of Hormuz would affect 20% of global energy supplies.
The Strait of Hormuz is a strategically vital waterway and a crucial route for crude oil exports from Middle Eastern oil-producing countries such as Saudi Arabia, Iraq, Qatar, and the UAE. Approximately one-fifth of global oil shipments pass through this strait. A recent report by JPMorgan Chase analysts involved a mathematical calculation: dividing the onshore and offshore crude oil storage capacity of Middle Eastern oil-producing countries by their daily production capacity. The conclusion is that if the Strait of Hormuz were completely closed, these oil-producing countries would have to cease production after 25 days of continuous operation because the oil could not be shipped out.
Given the current tensions in the Middle East, all shipowners have been forced to announce the termination of all voyages for cargo carried by shipowners such as PIL, MSC, MSK, CMA, ONE, and COSCO, regardless of whether the cargo has already arrived in port or is en route to ports in the Persian Gulf.
CILINE: For the Middle East Red Sea, starting March 2nd, a WRS fee will be added for the following containers: cargo en route on board/cargo not yet loaded at the port of origin, at a standard rate of USD 2100/3200 (WRS USD 2100/3200 will be added for any cargo en route that has not yet arrived at the port). HL: The Middle East Red Sea fee is suspended; a resumption plan will be announced later depending on the situation.
00CL: Booking for Middle East cargo is suspended; further notice will be given.
As of March 2, 2026, shipping through the Strait of Hormuz has shrunk significantly. Qatar, a major global liquefied natural gas (LNG) exporter, announced a suspension of LNG production due to an attack on its facilities, exacerbating concerns about disruptions to global energy supplies. You Ting, assistant researcher at the Carbon Neutrality and Development Institute of Shanghai Jiao Tong University, told this reporter that the impact of a Strait of Hormuz blockade on the world economy is mainly reflected in increased energy trade costs driving inflation. Firstly, due to structural challenges in oil and gas supply, oil and gas prices are soaring, and global industrial benchmark costs will rise rapidly, directly pushing up manufacturing and living costs. Secondly, logistics premiums increase global trade costs, and as a chain reaction, being forced to detour around the Cape of Good Hope or other alternative routes will reduce global container turnover. This systemic friction will inevitably increase the landed price of all goods, thereby undermining already fragile global trade growth.
