Strait of Hormuz disruption hits energy, fertilizer and industrial trade

Disruption in the Strait of Hormuz has exposed the vulnerability of global trade to a single maritime chokepoint, with early data showing sharp falls in exports of energy, fertilizers and industrial products. Exports of natural gas dropped by a staggering 95 per cent. The finding comes in analysis published by the International Trade Centre (ITC), a multilateral agency that has a joint mandate with the World Trade Organization (WTO) and UN trade and development body UNCTAD. Critical maritime corridorThe Strait, located south of Iran, is responsible for around one quarter of global seaborne oil trade and a significant share of liquefied natural gas flows and fertilizers, including a third of globally traded urea. Since the military escalation in late February, reduced commercial passage, concerns over navigational safety and higher transport and insurance costs have affected trade flows far beyond the region. Although recent lulls in the fighting have raised hopes that shipping could resume more fully, traffic remains far below normal levels. Strategic products examinedThe analysis focuses on 12 strategically important energy, fertilizer and industrial products for which Hormuz-depe...