![\"hormuz\"](\"https:\/\/www.europesays.com\/iran\/wp-content\/uploads\/2026\/03\/strait-of-hormuz-iea-impact.png\")
<\/a>Credit: IEA\nImpact on refined products and global refining<\/p>\n
The Gulf region is a key source of exports of refined oil products to global markets, notably for middle distillates such as diesel and jet fuel. Gulf producers exported 3.3 mb\/d of refined oil products and 1.5 mb\/d of liquefied petroleum gas (LPG) in 2025. More than 3 mb\/d of refining capacity in the region has already shut due to attacks and a lack of viable export outlets. Refiners outside the region are also curtailing refinery runs due to concerns over feedstock availability.<\/p>\n
Globally, markets for middle distillates have been relatively tight compared with those for other products. As such, there appears to be little flexibility for refineries outside the region to increase output of diesel and jet fuel further to compensate in the event of sustained supply losses.<\/p>\n
Oil inventories and emergency reserves<\/p>\n
Oil-consuming countries have significant amounts of oil in storage to bridge temporary supply losses. Global observed inventories of crude and products are currently assessed at more than 8.2 billion barrels, the highest level since February 2021. Roughly half of these are held in advanced economies, of which 1.25 billion barrels are held by governments for emergency purposes, with a further 600 million barrels of industry stocks held under government obligation. These stocks underpin the emergency collective action announced by the IEA on 11 March to make additional oil supply available to the market.<\/p>\n
LNG supply disruptions and gas market pressures<\/p>\n
The Gulf region\u2019s output of LNG has also been significantly impacted by the war. Global natural gas markets had been gradually rebalancing following the major shock that followed Russia\u2019s invasion of Ukraine in February 2022. A wave of new LNG capacity between now and the end of this decade is expected to transform market dynamics. But gas markets remained tight in the first two months of this year, with storage levels depleted coming out of the heating season in the Northern Hemisphere.<\/p>\n
The disruption of transit via the Strait of Hormuz has reduced LNG supplies from Qatar and the United Arab Emirates by over 300 million cubic metres per day since 1 March. This translates into a loss of over 2 billion cubic metres (bcm) of gas supply every week.<\/p>\n
The Ras Laffan facility in Qatar, which is the largest liquefaction facility in the world, has been offline since it was first attacked on 2 March. Regional gas production is also affected by the shut-in of oil fields, which has cut the output of gas associated with oil production.<\/p>\n
Natural gas prices in Asian markets have risen sharply since the start of the war to attract more LNG cargoes, reflecting the region\u2019s greater exposure to supply disruptions via the Strait. Higher prices and supply constraints have also prompted demand-side adjustments, including gas rationing in some countries.<\/p>\n
Why the Strait of Hormuz is strategically important<\/p>\n
The Strait of Hormuz is a narrow sea passage, separating the Arabian Peninsula and Iran, and connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. A crucial trade artery, it is the primary export route for oil and natural gas produced by Saudi Arabia, the UAE, Kuwait, Qatar, Iraq, Bahrain and Iran.<\/p>\n
Traffic through the Strait has been essentially halted by the conflict, putting pressure on the trade of a wide range of energy products.<\/p>\n
Around 25% of the world\u2019s seaborne oil trade transited the Strait in 2025, and options for oil flows to bypass the Strait of Hormuz are limited. Only Saudi Arabia and the UAE have operational crude pipelines that could potentially reroute flows to bypass the Strait, with an estimated 3.5 mb\/d to 5.5 mb\/d of available capacity. Other countries, including Iran, Iraq, Kuwait, Qatar and Bahrain, rely on the Strait to deliver the vast majority of their oil exports.<\/p>\n
About 80% of oil and oil products transiting the Strait in 2025 was destined for Asia.<\/p>\n
LNG trade dependence on the Strait of Hormuz<\/p>\n
In addition, over 110 bcm of LNG passed through the Strait of Hormuz in 2025. About 93% of Qatar\u2019s and 96% of the UAE\u2019s LNG exports transited through the Strait, representing almost one-fifth of global LNG trade. There are no alternative routes to bring these volumes to market.<\/p>\n
Most LNG from Qatar and the UAE goes to Asia. In 2025, almost 90% of the total volumes exported via the Strait of Hormuz was destined for the Asian market \u2013 accounting for more than a quarter of the region\u2019s total LNG imports. Just over 10% went to Europe.<\/p>\n
IEA\u2019s role and emergency oil stock release<\/p>\n