economy
March 4, 2026
Strait of Hormuz Closed, Massive Disruptions in Oil and Gas Market
WASHINGTON - Dozens of tankers and cargo ships are waiting at the entrance and exit of the Persian Gulf after the closure of the Strait of Hormuz, according to Vesselfinder data.
TL;DR
- Dozens of tankers and cargo ships are waiting at the entrance and exit of the Persian Gulf due to the closure of the Strait of Hormuz.
- The Strait of Hormuz is closed for the fourth day after Iran attacked five ships, blocking a route crucial for 20% of global oil and LNG supplies.
- Iraq has reduced oil production by nearly 1.5 million barrels daily due to storage and export issues.
- QatarEnergy has suspended operations at its LNG plants, affecting about 20% of the global LNG market.
- Saudi Arabia has halted production at the Ras Tanura refinery and rerouted crude oil shipments.
- Israel and Iraqi Kurdistan have also reduced oil and gas production.
- A fire broke out at the Fujairah port in the UAE, a key oil hub.
- Chinese refineries are scaling back operations or accelerating maintenance due to supply disruptions.
- India is seeking alternative crude oil and LNG sources, while Indonesia plans to increase US crude oil imports.
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