Hormuz Strait Shipping Plummets 95%: Energy Transport "Achilles' Heel" Obstructed, Global Oil and Gas Flows Forced to Reconfigure

**March 24 (Xinhua) —** The Strait of Hormuz shipping industry has been hard hit amid escalating U.S.-Iran tensions, with multiple sources confirming a sharp drop in commercial vessel traffic, according to Xinhua. Market service firms report commercial ship transits through the strait have plummeted by roughly 95% since March, disrupting the global energy transport system. Specifically, only 144 vessels passed through between March 1 and 23—far below the pre-conflict daily average of ~138. Of these, 91 carried oil and gas, most heading east away from the strait to the Asian market. Meanwhile, some LNG tankers originally bound for Europe have rerouted to Asia (where spot prices are higher), reflecting a shifting supply-demand dynamic. Route shifts have also emerged: Current transiting ships cluster on a northern corridor north of Iran’s Larak Island—designated a “safe passage” by Iran, monitored visually, and cleared by relevant forces. UK shipping outlets confirm over 20 vessels have taken this route. From a supply perspective, JPMorgan Chase analysis notes 98% of observable oil shipments through the strait now come from Iran, with volumes hitting ~1.3 million barrels per day in early March—signaling a heavy concentration of energy flows from specific regional sources. As one of the world’s most critical energy chokepoints, the strait handles ~25% of global seaborne oil trade and 1/5 of LNG shipments. U.S. Energy Information Administration (EIA) data projects 2024 oil transit volumes will reach ~20 million barrels per day. With shipping now limited, risks to global oil/gas supply chain stability and price volatility have risen sharply.