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Asian Countries Most Vulnerable to Strait of Hormuz Blockade
- On June 13, 2024, escalating military strikes between Israel and Iran sparked fears over potential closure of the Strait of Hormuz, a vital oil chokepoint.
- Iran threatened to block the strait in response to Western pressures, with its parliament approving closure though final action awaits Supreme Council endorsement.
- The Strait of Hormuz channels around 20 million barrels of oil daily, roughly 20% of global demand, with 84% destined for Asian countries including India and China.
- Robinder Sachdev warned India could suffer GDP losses of 0.5% for every $10 rise in crude, while Brent crude prices jumped from $69 on June 12 to $78 per barrel by Thursday.
- Disruption of the strait could trigger global energy shocks, severely impact India's energy security, and escalate geopolitical instability, prompting calls to explore alternative trade routes.
69 Articles
69 Articles
Iran tension underscores need for fuel resilience, minister says
Iran hasn’t acted on its threats to blockade the Strait of Hormuz, for now – but Shane Jones says the crisis underscores the need for more resilience in New Zealand’s supply chain. Those compulsively refreshing Al Jazeera for the last few days will know that a fifth of the world’s crude oil must pass through the strait, which is bordered by Iran in the north and has Oman and the United Arab Emirates to the south. Westpac chief economist Kelly Ec…
Berliner Morgenpost
Some of the most important shipping routes in the world lead through the Strait of Hormus. What a blockade through Iran would mean.
20 million barrels of oil are transported daily through the Strait of Hormus. The closure of the Strait is considered a nightmare for the world economy. The consequences could probably be limited.
Asian countries most vulnerable to Strait of Hormuz blockade
Around 84 percent of oil passing through the Strait of Hormuz is destined for Asia, leaving the economies of China, India, South Korea and others vulnerable should Iran blockade the crucial trading route over US strikes on its nuclear sites.
An Iranian blockade of the main maritime hub for oil and gas world would have severe repercussions on Asian markets, from China to India, to Japan and South Korea. While crude oil prices start to rise, many doubt that Tehran can actually implement the threats because it would damage Beijing, risking remaining further isolated.
Hormuz Close Impact On India: India imports 90% of its crude oil requirement and more than 40% of it comes from the Middle East countries and it reaches through the Strait of Hormuz only.
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