Asia is the most exposed region to the latest disruption in the Strait of Hormuz, according to a new UNCTAD report.
Around 84% of crude oil and 83% of liquefied natural gas shipped through the strategic waterway is destined for Asian economies.
Vessel traffic through the strait has collapsed from an average of 129 ships to just four since conflict escalated in the Middle East.
The disruption is also threatening global fertiliser and chemical supply chains, raising fears of higher food prices and economic pressure in developing nations.
The latest flashpoint in the Strait of Hormuz has once again exposed the fragility of the global energy system, with consequences being felt across the globe. Asian countries are bearing the brunt of the disruption, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD).
Around 14 million barrels of crude oil pass through the strait every day en route to markets around the world, according to UNCTAD. Asian countries receive the largest share of that trade, accounting for 84 per cent of the total. More than 10 billion cubic feet of liquefied natural gas (LNG) is also shipped through the strait to countries across the world, with Asia again taking the lion’s share, at 83 per cent.
Since February 27, 2026, when the United States and Israel launched a major military offensive against Iran, global energy markets have reacted sharply, the report showed. LNG prices have surged by nearly 75 per cent to around €55.8 per megawatt hour, while crude oil prices have risen by about 27 per cent, reaching approximately $91.8 per barrel as of March 9, 2026.
Some reports suggest global crude oil prices surged to nearly $120 per barrel mark in early trade on March 9, 2026.
Vessel traffic through the Strait of Hormuz has collapsed since the attack by US-Israel and retaliatory actions by Iran in West Asia, according to the report. The average number of ships transiting the route has dropped from 129 to just four as of March 7, 2026, underlining how heavily Asia depends on the Strait of Hormuz.
The fallout is also extending beyond the energy market. Sectorally, the supply chains for chemicals, and fertilisers in particular, have also been shaken by the latest developments.
Some of the world’s least developed countries, including Sudan, Tanzania and Somalia, are likely to be among the hardest hit because of potential fertiliser shortages, as per UNCTAD’s analysis.
Overall, one-third of annual global seaborne trade in chemicals passes through the Strait of Hormuz. More significantly, nearly 70 per cent of global urea trade — the world’s most widely used nitrogen fertiliser — moves through the region.
That raises the risk of a wider chain reaction, especially in countries already grappling with economic stress.
The report warns that a fertiliser shortage could have serious socio-economic consequences.
“Many developing countries already face high debt service burdens, limited fiscal space and constrained access to finance,” it said. “In this context, rising energy, transport and food costs could strain public finances and increase pressure on household budgets, potentially heightening economic and social pressures and complicating progress toward sustainable development, particularly in economies heavily dependent on imported energy, fertilisers and staple foods.”
The report also noted that the impact is unlikely to be confined to energy and chemicals. When oil prices rise, food prices often rise too, adding to the burden on households and governments alike.
UNCTAD points out that such pressures have, in the past, contributed to political unrest in the West Asia, as seen in countries such as Libya, Tunisia and Syria.
Some governments in Southeast Asia have already begun taking emergency measures. Vietnam and Thailand have announced nationwide work-from-home arrangements for public sector employees as part of efforts to conserve energy. In Bangladesh, all universities have been ordered to shut in a bid to reduce consumption.
In India, hotel associations in different parts of the country have already warned of an increasingly precarious situation, citing insufficient stocks of liquefied petroleum gas (LPG).
The Government of India has also acknowledged the developing crisis. The Union Ministry of Petroleum has said it is prioritising LNG supplies for households, the transport sector and LPG production.