The Strait of Hormuz: The Bottleneck That Sustains the World's Energy Supply Chain

What is the Strait of Hormuz and why does it matter for the global supply chain? The Strait of Hormuz is a narrow strip of sea that separates the Persian Gulf from the Gulf of Oman and, in turn, connects with the Indian Ocean. With only 39 km at its narrowest point, this maritime passage is considered one of the most sensitive strategic points in global commerce, especially in energy and the functioning of the international supply chain. Through this strait transits daily around 20% of the world's oil that is transported by sea. It's also a key route for liquefied natural gas (LNG), particularly from Qatar, one of the world's largest exporters, making it a nerve center for global logistics and the energy supply chain. Logistic importance of the Strait of Hormuz in the global supply chain The Strait of Hormuz doesn't just connect geographic regions, but sustains a large part of the planet's energy logistic flow. Its importance lies in: Being the only maritime exit from the Persian Gulf, where oil powers like Saudi Arabia, Iran, Iraq, Kuwait, Bahrain, Qatar and United Arab Emirates are located. Daily transport of between 17 and 20 million barrels of crude. Export of liquefied natural gas (Qatar sends more than 30% of global LNG). Indirect support to key industries within the global supply chain, such as automotive, agricultural, pharmaceutical and manufacturing. In summary: if Hormuz stops, the international supply chain suffers an immediate blow. What happens if the Strait of Hormuz is blocked? A partial or total blockade of the Strait of Hormuz would have immediate and large-scale consequences for the economy and global supply chain. These are some of the most relevant risks and effects: 1. Immediate disruption in oil supply Crude exports from the Persian Gulf would be limited or suspended, which would cause: Vertiginous increase in oil prices (domino effect on gasoline, diesel, transport). Direct impact on importing countries like China, India, Japan, South Korea and the European Union, affecting their supply chains. 2. Maritime transport cost increase Insurance premiums for ships crossing the zone would increase drastically. Shipping companies could divert their routes, generating delays and logistic cost overruns that would affect the global supply chain. 3. Geopolitical tension with economic consequences The region is geopolitically unstable. A blockade can escalate conflicts between powers. This would affect investment decisions, futures market, and could generate panic effect on stock exchanges, affecting international supply chain stability. 4. Impact on global supply chain Lower fuel availability would affect land, maritime and air transport. Sectors highly dependent on oil or LNG (like agro-industrial or pharmaceutical) would see cost increases or shortages. Could generate widespread delays in imports/exports, especially on routes depending on Middle Eastern and Asian ports. How can logistics companies prepare against supply chain risks? An event like the Hormuz blockade highlights the need for a resilient and diversified supply chain. Some recommendations for logistics actors: Diversify routes and supply origins, when possible. Maintain strategic inventories or buffers in critical products. Monitor reliable sources of geopolitical and maritime information. Bet on traceability technology that allows identifying bottlenecks in real time. Establish relationships with multiple international transport providers to strengthen supply chain resilience. Conclusion Although it's a narrow strip of sea, the Strait of Hormuz represents one of the planet's most critical logistic points. Its stability or instability has effects that go far beyond oil: it impacts transport, global prices, energy security and the global supply chain. At Control Terrestre, we understand that the international context also affects what happens in our national and cross-border routes. That's why we maintain a strategic vision that allows us to anticipate changes, adapt with flexibility and offer comprehensive logistics solutions that strengthen our clients' supply chain. Interested in receiving global logistics analysis with local impact? Subscribe to our bulletin or write us at customer-service@controlterrestre.com to learn how we can help you make your supply chain more solid, efficient and prepared for global risks.