Gulf energy losses approach $15 billion with navigation disruption in the Strait of Hormuz

Gulf countries have incurred losses estimated at about $15 billion in energy revenues since the outbreak of the war between the United States, Israel, and Iran, due to the almost complete disruption of navigation in the Strait of Hormuz, one of the most important maritime routes for oil and gas trade in the world.

One of the most important oil routes stopped

Analytical data on energy markets indicate that about $1.2 billion daily of crude oil, refined products, and liquefied natural gas passed through the strait according to average prices during 2025.
However, navigation through the strait has almost stopped since the outbreak of the war on February 28, leading to the disruption of a large part of the oil and gas exports of the Gulf countries and the accumulation of large shipments on tankers without the ability to reach global markets.

Shipments worth billions of dollars stuck at sea

Data show that approximately $10.7 billion worth of oil, its derivatives, and liquefied natural gas remain loaded on tankers near the strait, amid high security risks and the closure of the shipping lane to maritime traffic.

Significant production cut

In an attempt to avoid worsening the crisis, Saudi Arabia, Kuwait, United Arab Emirates, and Iraq reduced their production by about 6.7 million barrels per day, which is about one-third of their oil production.
This cut is considered one of the largest reductions since the beginning of the war, and it has led to a reduction in global supplies by about 6%, increasing tensions in global energy markets.

Iraq most affected

Estimates by consulting firms in the energy sector indicate that Iraq is the most affected by the export stoppage, as the Iraqi government relies on oil to secure about 90% of its public revenues.
Estimates also indicate that Saudi Arabia has incurred losses estimated at about $4.5 billion since the beginning of the war due to decreased exports and changes in shipping routes.

Redirecting export routes

In an attempt to reduce dependence on the Strait of Hormuz, Saudi Aramco has begun redirecting about 70% of crude oil exports to the Yanbu port on the Red Sea.
The company's CEO Amin Nasser warned that supply disruptions do not only threaten the energy sector but may also extend their impact to aviation, agriculture, the automotive industry, and global supply chains.

Potential global repercussions

Economic analysts believe that the continued closure of the Strait of Hormuz could lead to a shock in global energy markets with rising oil and gas prices and declining supplies, which may place the global economy before a new wave of inflationary pressures.