"Financial blockade" stalls the global energy supply chain

WealthCoffee · 2026-04-04T03:13:07+00:00

The Strait of Hormuz is a critical global oil transportation route, with approximately 20 million barrels of crude oil passing through daily in 2025. Although not officially blocked, due to tensions between the US and Iran, many oil tankers have chosen to suspend operations, primarily because of increased insurance risks, which have disrupted the global energy supply chain.

WealthCoffee

2026-04-04 03:13:07

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In 2025, an average of about 20 million barrels of crude oil and refined products will pass through the Strait of Hormuz every day, accounting for about one-quarter of global seaborne oil trade. Therefore, any disruption could have a major impact on oil prices.

Since the U.S. and its allies took military action against Iran, the Strait of Hormuz has not seen an actual “physical blockade.” There are still some ships that can transit, but many oil tankers and cargo ships have chosen to suspend operations voluntarily—why is that?

What truly locks up the global energy supply chain is not only the shelling itself, but also a policy issued by an insurance company.

The sea lanes are not blocked, but passage has already come to a standstill

Imagine a supertanker just loaded with crude oil, worth about $200 million, getting ready to leave the Persian Gulf, pass through the strait, and head to Asia.

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