WANA (Jan 22) – The global energy market is watching the Middle East map more closely than it is watching production increases. Over 21 million barrels of oil pass through the Strait of Hormuz daily, and the slightest disruption there could send the world economy into shock.

 

The Market’s Alarming Numbers:
🔸World daily consumption: 90 to 102 million barrels
🔸Daily passage through the Strait of Hormuz: ~21 million barrels
🔸Meaning: Over 20% of the world’s consumed oil

 

In contrast, even the most optimistic scenario for Venezuela’s oil return adds only one million barrels to global supply—a completely significant scale difference.

 

Iran’s importance lies not only in oil production but also in securing the world’s energy transit route. A major portion of the region’s oil exports depends on a corridor intrinsically linked to Iran’s strategic position and deterrent power.

 

Increased tensions in the Persian Gulf could lead to a spike in oil tanker insurance costs, shipping disruptions, and locked-up oil markets—even without an actual halt in exports.

 

Insecurity in the Strait of Hormuz means higher energy costs, rising commodity prices, and inflationary pressure on major economies.

 

The energy market does not just look at production volume; it reacts to the security of its chokepoints. In this equation, the Strait of Hormuz and Iran’s role are key elements for the stability of the global energy market.

A view of the oil exhibition in Tehran, Iran, May 14, 2022. Majid Asgaripour/WANA (West Asia News Agency)