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๐Ÿ”ฅWhat Happens to Global Shipping If Hormuz Shuts Down?

๐ŸŒOne chokepoint. 20% of oil. 200+ container lanes at risk.

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Maritime Analytica
Jun 18, 2025
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Greetings, Maritime Mavericks!

Tensions in the Middle East have escalated sharply after Israelโ€™s strikes on Iran.

The Strait of Hormuz โ€” a key artery for both oil and container flows โ€” is now under threat.

Over 20% of global oil and nearly 200 weekly container services pass through this chokepoint.

The route sees 3,000+ ship transits monthly, including tankers, LNG carriers, and boxships.

While a full closure is unlikely, even limited disruption could destabilize trade routes.

Shipping lines are already adjusting course as war risk premiums and freight rates edge upward.

So, what happens if the Strait really shuts down? Letโ€™s break it down ๐Ÿ‘‡

  • ๐Ÿ“ The Strait of Hormuz โ€” Small, but Mighty

  • ๐Ÿ” The Domino Effect โ€” What Would Break?

  • ๐Ÿ’ก If Hormuz Closes: Whatโ€™s Next?

  • ๐Ÿ… Big Picture

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๐Ÿ“ The Strait of Hormuz โ€” Small, but Mighty

  • Handles 20.9M barrels/day of oil (2023, EIA)

  • Hosts 187 weekly container services via Jebel Ali & Abu Dhabi

  • Supports container flows to/from Saudi Arabia, Qatar, Kuwait, Bahrain, Iraq

  • Just 2โ€“3% of global container volume, yet critical for Gulf logistics

  • Now a flashpoint โ€” with Qatar holding LNG vessels outside the strait as a precaution


๐Ÿ” The Domino Effect โ€” What Would Break?

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