Reuters Graphics: How the Strait of Hormuz Closure Affects Global Oil Supply

Institution: Reuters Graphics

Date: March 2026

URL: https://www.reuters.com/graphics/IRAN-CRISIS/OIL-LNG/mopaokxlypa/

File: reuters-graphics-hormuz-closure.md

Summary

Reuters Graphics provides a visual and narrative overview of the Strait of Hormuz closure's impact on global oil supply, published in the immediate aftermath of the U.S.-Israeli war on Iran. The report documents that the conflict has "effectively shut" the Strait — through which approximately a fifth of the world's daily oil and LNG supply passes — with Saudi Arabia, Iraq, and Kuwait cutting production because their storage facilities are full after 10 days with no shipping. The IEA responded with a record 400 million barrel emergency oil release.

Key Findings

1. **Hormuz transit share:** Only the Strait of Malacca moves more oil tanker traffic than Hormuz. Approximately **a fifth (~20%) of the world's daily oil and LNG supply** passes through the Strait. (Reuters Graphics, citing EIA/Vortexa data)

1. **Production cuts due to storage fill-up:** Saudi Arabia, Iraq, and Kuwait have all cut production at oilfields because they must pump oil into storage if they cannot load onto tankers — and **oil storage facilities are full after 10 days** with no shipping. (Reuters Graphics)

1. **IEA emergency response:** The International Energy Agency is planning to recommend the release of **400 million barrels of oil** — the **largest such move in IEA history** — to help absorb the shock. (Reuters Graphics)

1. **Price spike:** Oil prices rose to **$119/barrel on Monday** (the highest level since 2022) before dropping again before market close. If disruptions are prolonged, prices could rise further "until the recessionary effect of higher energy costs destroys demand." (Reuters Graphics)

1. **Asia most vulnerable:** Asia is most vulnerable, relying more heavily on Middle East crude, gas, and fuel imports than other regions. Responses include: China asked refiners to halt fuel exports; South Korea announced **price caps on fuel for the first time in 30 years**; Bangladesh **shut universities to conserve power and fuel**. (Reuters Graphics)

1. **Saudi pipeline alternative:** Saudi Arabia is pumping crude through its East-West Pipeline (Petroline) to the Red Sea port of Yanbu. The pipeline can take up to **5 million bpd**, but Yanbu has **rarely loaded more than 2.5 million bpd**. (Reuters Graphics)

1. **UAE pipeline alternative:** The UAE's ADCOP/Habshan-Fujairah Pipeline has a capacity of **1.5 million bpd**, transporting oil from Abu Dhabi fields to Fujairah on the Gulf of Oman. (Reuters Graphics)

1. **Refinery damage:**

• **Kuwait's Al Zour refinery (615,000 bpd)** — key jet fuel supplier to Europe and Africa — unable to ship fuel
• **Bahrain's Bapco Energies Sitra refinery (380,000 bpd)** — hit on Monday, declared force majeure
• **Saudi Aramco's largest refinery at Ras Tanura** — shut after drone strike; also the country's largest marine export terminal (Reuters Graphics)

1. **Restart timeline:** Qatar's LNG plant may take several weeks to ramp up from total shutdown. Oilfields that reduced production can take time to recover — pressure loss can lead to long-term reduction in output. Shipping costs likely to remain elevated due to drone/attack risk. (Reuters Graphics)

1. **Price breadth:** Crude oil, gasoline, diesel, jet fuel, natural gas, petrochemicals, power, and fertilizer **prices have all risen sharply** since the conflict began. (Reuters Graphics)

1. **Data sources cited:** EIA analysis based on Vortexa tanker tracking and Panama Canal Authority data; LSEG Datastream for price data; Kpler for 2025 Middle East import shares. (Reuters Graphics)

Entities Mentioned

• **Organizations:** International Energy Agency (IEA), Saudi Aramco, Kuwait Petroleum Corporation, Bapco Energies
• **Places/Countries:** Saudi Arabia, Iraq, Kuwait, UAE, Qatar, Bahrain, China, South Korea, Bangladesh, Oman, Yemen (Houthis)
• **Ports/Facilities:** Strait of Hormuz, Strait of Malacca, Yanbu port (Saudi Arabia), Fujairah port (UAE), Ras Tanura refinery (Saudi Aramco's largest), Al Zour refinery (Kuwait, 615k bpd), Sitra refinery (Bahrain, 380k bpd), Habshan-Fujairah Pipeline
• **Infrastructure:** East-West Pipeline (Petroline) — 5 mbd capacity, 2.5 mbd practical Yanbu throughput
• **Numbers:** ~20% (Hormuz share of global oil/LNG), $119/b (price spike high), 400 million barrels (IEA emergency release), 5 mbd (pipeline theoretical capacity), 2.5 mbd (Yanbu practical), 615k bpd (Al Zour), 380k bpd (Sitra), 10 days (storage fill timeline), 30 years (South Korea fuel price cap first use)

Relevance to Q1/Q2/Q3

• **Q1 (Hormuz closure extent):** High relevance — documents storage fill-up mechanism, production cuts from full storage, and concrete infrastructure damage (Ras Tanura, Al Zour, Sitra)
• **Q2 (Price impact):** High relevance — $119/b price spike, documents breadth of price increases across all energy categories, and the mechanism by which prices could rise further (demand destruction threshold)
• **Q3 (Europe gas/security):** Medium relevance — Al Zour refinery is a key jet fuel supplier to Europe and Africa; notes Europe's exposure to refined product disruptions

Related Articles

Q1-SUPPLY-DESTRUCTION Q2-PRICE-IMPACT Q3-EUROPE-IMPACT

Cross-references: Reuters-Graphics-Hormuz → Dallas-Fed → EIA → CRS → WTO