We analysed the importance of the Strait of Hormuz to global trade

The Strait of Hormuz is one of the world’s most vital shipping lanes, linking the oil-rich Gulf nations with the rest of the world.

Yet, following the onset of the Israel-Iran conflict, there is a growing concern that this strait may be closed off. Vessels are reportedly transmitting messages confirming their nationality to avoid being targeted.

Analysis from Russell’s Trade Threat Intelligence reveals that $1.49 trillion or 5% of all global trade is shipped through the Strait of Hormuz, making it the third largest transit route in the world, after the Malacca Strait and Dover Strait.

Crude Oil is the largest commodity that is shipped through the Strait, with 25% of all global crude oil trade passing through the Strait, only bettered by the Malacca Strait.