In recent months, conflict in the Persian Gulf region has severely impacted global trade flows of energy and related products, highlighting the vulnerability of these supply chains to geographic and geopolitical factors. Exports from Middle East countries with significant oil and gas reserves, including Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Iraq, and Iran, currently account for around 40% of global crude oil trade, 29% of trade in refined petroleum products, and 14% of natural gas trade, along with 20–30% of global trade in fertilizer and related inputs. Nearly all of these exports are transported by ship through the Strait of Hormuz, a narrow passage subject to strategic control by Iran and other parties.
Authors Geoffrey J. Blanford and Aranya Venkatesh