The Strait of Hormuz (SoH) remains one of the key routes for exporting crude oil, accounting for almost 20% of the global petroleum liquid consumption and 20% of worldwide LNG trade. The prolonged closure of this route and disruption in the operations of crude and LNG producers could significantly increase energy prices across the world.  The SoH remains one of the key routes for exporting crude oil and natural gas liquids, accounting for almost 20% of the global petroleum liquid consumption. Further, nearly 20% of the global liquefied natural gas (LNG) exports originate from Qatar and the United Arab Emirates (UAE) with the SoH being the sole evacuation channel. Prolonged armed conflict in this region is likely to create supply shortages and push up global energy prices further.

Exhibit: Brent crude price trend ($/bbl)

Source: EIA, ICRA Research