- The Strait of Hormuz maintained steady oil and LNG flows in Q1 2025 despite rising Israel–Iran tensions.
- Around 20% of global petroleum liquids and one-fifth of LNG continue to transit through this critical chokepoint.
- Saudi Arabia remains the top crude exporter via the strait, while Asia dominates as the primary shipment destination.
- U.S. imports through Hormuz rose to a 40-year high, despite growing domestic and Canadian supply.
The Strait of Hormuz remains a critical maritime passage, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. In 2024, it carried an average of 20 million barrels per day of oil, accounting for around 20% of global petroleum liquids consumption. According to the U.S. Energy Information Administration, using Vortexa tanker tracking, oil flows through the strait held steady in early 2025 despite heightened tensions between Israel and Iran. Although no disruption to maritime traffic has occurred, Brent crude saw a price increase from $69 to $74 per barrel between June 12 and 13. Between 2022 and 2024, crude and condensate volumes declined by 1.6 million barrels per day, partially balanced by a 0.5 million barrel per day increase in petroleum product shipments. This trend reflects ongoing OPEC+ production cuts, rerouting by Aramco through land infrastructure, and expanded refining capacity in the region.
Regional Flows and Export Routes Define Hormuz Energy Trade
In 2024 and the first quarter of 2025, the Strait of Hormuz played a key role in the global energy supply chain, handling over a quarter of global seaborne oil trade and nearly 20% of total oil and petroleum product consumption worldwide. Liquefied natural gas (LNG) shipments were also notable, with Qatar alone moving about one-fifth of global LNG exports through the strait. Saudi Arabia led crude exports via Hormuz, with 38% of its shipments—around 5.5 million barrels per day—transiting the route in 2024.
While there are alternative export routes, their use remains limited. Saudi Aramco’s East-West pipeline, which can carry up to 7 million barrels per day during peak operations, and the UAE’s 1.8 million barrels per day pipeline to Fujairah together could divert roughly 2.6 million barrels per day away from Hormuz, but these lines typically run below capacity. Iran’s Goreh–Jask pipeline and the Jask terminal, with a design capacity of about 300,000 barrels per day, exported less than 70,000 barrels daily in mid-2024 before halting operations entirely after September.
Asia continued to be the dominant destination for energy exports via Hormuz, receiving about 84% of crude and condensate and 83% of LNG shipments in 2024. China, India, Japan, and South Korea accounted for nearly 69% of the crude volumes. U.S. imports through the strait reached 0.5 million barrels per day—representing 7% of its crude imports and 2% of total petroleum liquids consumption—a level not seen in nearly four decades, driven by the rise in domestic output and Canadian supply.
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Source: IAA PortNews
