"Financial blockade" stalls the global energy supply chain

WealthCoffee · 2026-04-02T04:00:24+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

2026-04-02 04:00:24

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In 2025, about 20 million barrels of crude oil and refined products pass through the Strait of Hormuz each day on average—roughly one quarter of all global seaborne oil trade. Therefore, any disruption could have a massive 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.” A small number of ships can still pass, but many oil tankers and cargo vessels choose to suspend operations voluntarily—so why is that?

What really clogs the global energy supply chain is not only the shellfire itself, but also an insurance company’s policy.

The route is not closed, but traffic has already ground to a halt

Imagine a very large crude carrier just loaded with crude oil, worth about $200 million, preparing to sail out of the Persian Gulf, pass through the strait, and head to Asia.

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