20% of the world’s oil and 25% of its LNG pass through here: why every Middle East crisis threatens global energy stability
A vital maritime artery for the planet
The Strait of Hormuz is a narrow corridor through which about 20% of global oil demand and more than 25% of the world’s liquefied natural gas (LNG) exports flow. Every day, between 17 and 18 million barrels of crude oil travel through this channel, which is only 33 kilometers wide and lies between Iran and Oman. Qatar, the world’s largest LNG exporter, ships over 18 billion cubic feet per day through this passage, making Hormuz a critical node in the global energy supply chain.
An invisible yet persistent threat
According to the Unimpresa Study Center, every geopolitical crisis in the Middle East — like the recent Israel-Iran clash — poses a threat to global energy security. A physical closure isn’t necessary to cause chaos: the mere risk of disruption fuels market speculation and price volatility. Iran, which controls the northern shore of the Strait, has frequently threatened to block transit in response to sanctions or military actions.
Trump’s truce announcement triggers a 10% gas price drop
The announcement of a truce between Israel and Iran by President Donald Trump immediately calmed energy markets: natural gas prices fell 10% in Amsterdam. This sharp reaction reflects just how sensitive the global system is to tensions in the region. As Giuseppe Spadafora, vice president of Unimpresa, pointed out, Hormuz is “a symbol of the fragility of an energy order still too reliant on unstable areas of the world.”
Europe’s delay in energy diversification
The European Union, still largely dependent on energy from politically unstable regions, has failed to invest in strategic autonomy. Recent crises prove the need to develop resilient infrastructure, secure multilateral agreements, and accelerate the shift to renewable sources. Without this, we will continue to “pay the price of peace” at the gas pump and on energy bills.
Hormuz: the thermometer of global vulnerability
The Strait of Hormuz is more than a commercial route. It is a geopolitical lever, a barometer of global stability, and one of the most critical chokepoints for global trade. Every importing country, especially in Europe, must closely monitor this passage. The next crisis may not give us time to prepare.
FAQ
1. Where is the Strait of Hormuz located?
Between Iran and Oman, connecting the Persian Gulf to the Gulf of Oman.
2. How much of the world’s oil passes through it?
About 20% of global oil consumption.
3. Why is it strategic for gas?
It carries over 25% of global LNG exports daily.
4. Which countries use it to export oil and gas?
Saudi Arabia, Iraq, Kuwait, UAE, Iran, and especially Qatar for LNG.
5. Which markets depend most on it?
Asian markets (China, India, Japan, South Korea), and increasingly, Europe.
6. Is a blockade realistic?
Unlikely, but not impossible: the risk alone causes financial panic.
7. What happened with the Israel-Iran truce?
Trump’s announcement brought immediate market relief, with a 10% drop in gas prices.
8. What are the alternatives to Hormuz?
Some pipelines exist, but none can fully replace the strait’s capacity.
9. Why is Europe vulnerable?
Because it delayed investing in energy diversification and still relies on fossil imports.
10. What’s the long-term solution?
Invest in strategic autonomy, resilient infrastructure, and renewable sources.
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