Middle East Conflict Halts Hormuz Oil Traffic, Triggering Global Energy Crisis

Key Facts

1Crude tanker traffic through the Strait of Hormuz has nearly stopped since March 9 due to Iranian strikes on infrastructure.

2The International Energy Agency described the disruption as the largest in global oil market history.

3Saudi Aramco is ramping its East-West pipeline to Yanbu to full capacity, adding 3mb/d of flow against 20-21mb/d of pre-conflict exports via Hormuz.

4Prices for marine fuel (VLSFO) and jet fuel have roughly doubled compared to the January/February average.

The Strait of Hormuz has seen a near-total halt in crude tanker traffic since March 9 following Iranian strikes on regional energy infrastructure. The International Energy Agency (IEA) has characterized this disruption as the most significant in the history of the global oil market. In response, Saudi Aramco is operating its East-West pipeline to Yanbu at full capacity to mitigate the loss, though it only covers 3 million barrels per day of the usual 21 million. The crisis has caused prices for marine fuel (VLSFO) and jet fuel to double compared to early 2024 averages. This 'black swan' event is placing immense pressure on global supply chains and the aviation sector, leading to a surge in inflationary risks. Analysts warn that the prolonged closure of this vital maritime artery could have catastrophic consequences for the global economy.