Iran War Halves Hormuz Strait Oil Flows to 6-8 Million BPD, Forcing Global Trade Route Rewrites and Adding $330 Billion to Import Costs
The ongoing conflict has compelled Middle Eastern oil exporters like Saudi Arabia and the UAE to divert crude through alternative routes such as the Bab el-Mandeb Strait and Fujairah port, despite existing capacity limitations. Global energy import bills swelled by an additional $330 billion between March and August, with Brent and WTI crude prices now trading above $90 per barrel. Resource-poor nations like Japan, which previously relied almost entirely on the Middle East, are now securing more diversified suppliers from the U.S., Canada, Africa, and Azerbaijan, leading to a record $76.39 billion import bill for July.
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