Strait of Hormuz disruption hits energy, fertilizer and industrial trade

The disruption of the Strait of Hormuz has significantly impacted global trade, particularly for energy, fertilizer and industrial products. According to analysis by the International Trade Centre (ITC), exports of natural gas fell by 95%, while exports of urea dropped by 83%. Other products like methanol and ammonia experienced declines of 80% and 75%, respectively.

The most affected sectors were energy products, with crude petroleum oil exports falling by 28 million tonnes and refined petroleum oils by 7.3 million tonnes. The ITC's analysis examined the impact on 12 strategically important economies, including Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. Combined exports of these economies declined by 21% in value in April 2026 compared to April 2025.

However, the analysis also noted that export values were affected by sharp movements in commodity prices due to the disruption. The most significant declines were in liquids such as natural gas and crude oil, while less affected were polymers like polypropylene used in plastic packaging. Importing markets, such as Japan, recorded declines in their total imports, while others like Thailand saw an increase in shipments as they sought alternative suppliers.

The disruption has led to trade diversion, with alternative suppliers increasing shipments for 10 of the 12 products, but this has not fully replaced disrupted supplies by April.