Energy Gang · Wood Mackenzie

The war with Iran: what does the disruption in the Strait of Hormuz mean for global energy?

March 10, 2026·1 hr 11 min·6 clips

The world economy cannot function if the Strait of Hormuz is closed, with 30% of global naphtha supply now trapped inside.

Hormuz is the pressure point. Ed Crooks starts from a blunt premise: the world economy cannot function for long if the Strait of Hormuz closes. The excerpt gets concrete fast, pointing to about half a million barrels of naphtha inside the Gulf and about 30% of the global naphtha market coming from there. The shipping figures make the risk easier to see. The Ebu is described as averaging about 730,000 barrels a day lifting, roughly half a VL each day. Since the disruption began, nine VLs have loaded, with two more loading during the conversation. Ed keeps the focus on the physical system, not just the market reaction. Amy turns to shut-ins. If countries run out of tankage, they may have to halt production, and that creates the next problem: how long facilities stay down and what happens when they try to come back online. Qatar is the example. The LNG force majeure reference matters because the shutdown is discussed as a month, two months, or three months, not a week or two. Chris draws a careful line between vessel types. Oil tankers, including clean petroleum products, VLCCs, and Suezmaxes, are easier to pause. LNG carriers are trickier. Once they sit idle, layups, maintenance, and restart procedures become part of the supply risk. Ed closes on a sober note: the story is moving quickly, big changes are still possible, and listeners should follow Chris's podcast for more.

As heard by us

A grounded energy-market briefing on how Hormuz disruption can turn into oil, LNG, storage, and shipping trouble.

Energy Gang looks at the war with Iran through the energy chokepoint of the Strait of Hormuz. Ed Crooks is joined by Amy Myers-Jaffe and Chris Avasano for a practical discussion of what disruption there can mean for oil, LNG, naphtha, storage, and shipping.

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You want a clear read on how a Strait of Hormuz disruption could hit oil, LNG, and shipping.

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