Global energy and supply chain disruptions following the Strait of Hormuz closure

On February 28, the military operation named 'Epic Fury' led to the closure of the Strait of Hormuz, trapping over 18 million barrels of oil within the Gulf. Traffic through the strait has dropped from over 100 ships daily to only a few, severely impacting the global supply of energy, fertilizers, and consumer goods. Major oil and gas infrastructure has faced drone and tactical strikes throughout March, including facilities in Ras Tanura, Tehran, Yanbu, Haifa, and Ras Laffan, with QatarEnergy estimating a five-year restoration period for its damaged facilities. Alternatives to the strait, such as the Saudi East-West pipeline, can only offset roughly 13% to 33% of the normal daily transit capacity. While Saudi Aramco's CEO Amin Nasser confirmed that key pipelines are operating at full capacity, global markets remain volatile. Reports indicate that the current shortages in oil, gas, and chemical fertilizers pose a significant threat to global food production and regional economic stability. European authorities have expressed grave concerns regarding supply security as fuel shortages loom.