Hormuz, Bab el Mandeb Blockades Disrupt 20% of Global Oil and LNG Trade
Updated
Updated · haver.com · Sep 8
Hormuz, Bab el Mandeb Blockades Disrupt 20% of Global Oil and LNG Trade
3 articles · Updated · haver.com · Sep 8
Summary
Hormuz tanker traffic collapsed to 22.8 thousand tons in the month after the March 2 closure from 1.97 million tons in the prior 30 days, showing how little crude flow could be replaced elsewhere.
A partial reopening from June 17 to July 14 restored only 29.5% of Hormuz's original tanker volume, and the Houthis' July 20 blockade of Bab el Mandeb then hit the alternate route ships had been using.
Saudi Arabia rerouted some crude through its Petroline to Red Sea ports, but western port calls rose just 11.4% while eastern Persian Gulf calls fell 29.8%; eastern export tonnage dropped 43%.
Arabian Light crude jumped to $121 a barrel from $66 after the initial Hormuz shock, eased to about $97 during the reopening and later settled near $88, with the second blockade threatening renewed scarcity.
Roughly a fifth of global oil consumption and LNG trade had moved through Hormuz before the conflict, leaving prolonged disruption likely to entrench higher energy-price volatility and broader inflation pressure.