How the Strait of Hormuz closure sparked a global energy crisis hitting key industries

Hinzugefügt: 2026-05-05

[00:00:00]The only maritime passage from this oil and natural gas producing hub into the Indian Ocean has been effectively closed since the start of the war. The result, more than 500 million barrels of crude oil have been taken off the markets.

[00:00:16]Now, a shortage in supply has led to higher fuel prices everywhere. Asia, the world's manufacturing hub, is the worst hit. 90% of its oil and gas passes through this waterway.

[00:00:29]Now, because of what's happening here, several industries have been affected.

[00:00:34]Those that depend on fossil fuel byproducts and the minerals of the region.

[00:00:41]Among them, fertilizer manufacturing.

[00:00:44]Now, fertilizer prices shot up 30 to 50% within weeks of the conflict. It's now threatening global crop yields and the availability of food.

[00:00:56]Now, the high energy prices and the shortage in petrochemical feedstock, which is essentially raw material derived from oil refining oil and natural gas, is impacting the production capacity, be it in plastics, in steels, in aluminum, or automotive manufacturing.

[00:01:14]Now, helium supplies have also been disrupted with 1/3 of global production offline. Qatar, which accounts for about 30% of those supplies, has halted production after attacks on its facilities. Now, it's affecting the semiconductor industry and medical imaging, among others.

[00:01:36]The aviation industry is also is seeing disruptions. Jet fuel prices have shot up 50 to 60% and that means airlines have been forced to increase price costs.

[00:01:50]Now, the International Atomic Energy Agency says Europe roughly has about 6 weeks of jet fuel supply left.

[00:02:00]Now, shipping, the backbone of global trade, has also been hit hard. Now, the closure of the Strait of Hormuz has left hundreds of oil tankers and commercial ships stranded for weeks. Now, threat uh threats of attacks here, which connects to the Suez Canal, has led ships to take the longer route and go right round the Cape of Good Hope to reach European shores. And that increases transit time.

[00:02:30]And finally, tourism, it's being impacted. Now, estimates suggest the losses are anywhere between 30 to 55 billion dollars. Remember, countries here have been increasing tourism investment with the aim of diversifying their economies, but the war could change all that.