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Strait of Hormuz closure and Houthi attacks disrupt key oil shipping

The article links the disruptions to supply chokepoints tied to about 20% of global oil trade and to fertilizer and industrial inputs that depend on oil and gas feedstocks.

Reported · Written up by our desk · Energy

Since early March, attention has intensified on the Strait of Hormuz after Iran closed the waterway in response to an attack on Iran by the United States and Israel, according to OilPrice.

With the strait closed to most ships, the route has become central to global energy logistics, the outlet said. It is described as a transit point for about 20% of the world's oil, and it also supports movement of inputs such as ammonia (23%), urea (34%), and phosphate (20%), alongside other derived or co-products of oil and natural gas.

The article also points to heightened conflict in the Red Sea region, where Ansar Allah, known as the Houthis, has escalated operations against Saudi-linked shipping. It says the Houthis closed the Bab el-Mandeb Strait near their territory to Saudi vessels, a corridor that connects Red Sea shippers with ocean routes to Asia, including ships moving via the Suez Canal.

According to OilPrice, the Houthis say commercial shippers not serving Saudi Arabia may continue using the strait, but many have chosen to avoid it because of attacks on Saudi ships.

Latest closeNat gas $2.715 ▼0.4%

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