The closure of the Strait of Hormuz by Iran is sending shockwaves across global energy markets, with Asia expected to face the maximum pain. Roughly 13 million barrels per day passed through it in 2025, representing about 31% of all seaborne crude flows. Qatar and the UAE account for 99% of Pakistan's LNG imports, 72% of Bangladesh's, and 53% of India's.

According to international research group Zero Carbon Analytics, Japan faces the highest direct risk from disruptions in the Strait of Hormuz, followed by South Korea and India. Around 20 per cent of the world's oil and LNG passes through the two-mile-wide shipping lanes in the Strait of Hormuz.

Brent crude oil prices surged from approximately $72 per barrel at Friday close to $80 per barrel in early Monday Asian trading—representing an 11.1 percent increase within 48 hours. This narrow passage facilitates the daily transit of 17-21 million barrels of crude oil, representing roughly 20-21 percent of global seaborne petroleum trade.

At least five tankers have been damaged, two personnel killed and about 150 ships stranded around the strait. The majority of the crude oil shipped through the Strait of Hormuz goes to Asia, with China, India, Japan, and South Korea accounting for nearly 70 percent of shipments.

Japan, in particular, imports more than 90 percent of its oil through the strait. South Korea depends on the Middle East for about 70 percent of its crude imports. Taiwan imports more than 96 percent of its energy, most of it from the Middle East. About 60 percent of Taiwan's oil — and about a third of its natural gas — arrives by ship via the Strait of Hormuz.

Maritime insurance premiums for the Persian Gulf are rising by 50%, with major providers issuing cancellation notices for war risk coverage effective March 5, 2026. Global energy supply faces an immediate deficit of 20 million barrels of oil per day, representing one-fifth of global consumption as of early 2026.

Saudi Arabia and the UAE have some pipelines for both oil and gas that can bypass the Hormuz. There is an estimated spare capacity of 2.6 million barrels per day for these pipelines. But that's a fraction of what is normally shipped through the strait. Ships crossing the strait of Hormuz carry around one-fifth of global oil supplies.