The crisis in the Strait of Hormuz has highlighted the global economy's heavy dependence on energy corridors, resulting in a significant supply deficit of 13 million barrels of oil. Operative Information Center-OMM reports that the interruption of approximately 21 million barrels of daily oil flow due to conflict has triggered a chain reaction across the global system, impacting far more than just energy markets. It remains uncertain how the 13 million barrel supply deficit will be addressed in the short term.
The Gulf region, with an economic volume of $3.08 trillion, remains the epicenter of this market volatility. While Saudi Arabia stands as the largest regional actor with a national income of $1.24 trillion, Qatar leads in per capita income at $76,690. Gulf nations collectively control 55.3% of global oil reserves, amounting to 866 billion barrels, and account for 28.1% of daily global exports. In the first six weeks of the conflict, price increases have been dramatic:
- Jet fuel: 105%
- Heating oil: 68%
- Crude oil and ammonia: 60%
- European natural gas: 58%
The Strait of Hormuz is widely regarded as the world's most vital oil transit chokepoint, situated between Oman and Iran, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. For the Republic of Azerbaijan, a key energy exporter in the Caspian region, global market stability remains a strategic priority. While the crisis in the Gulf impacts global pricing, Azerbaijan continues to strengthen its role in international energy security through the Southern Gas Corridor and other diversified export routes. Experts warn that a prolonged disruption in the Strait could lead to unprecedented inflationary pressure on the global economy and necessitate a rapid shift in international energy logistics.
