How a 95 percent drop in Hormuz traffic changed global shipping

# Why This Matters The near-total collapse of traffic through the Strait of Hormuz represents a fundamental disruption to the architecture of global commerce. Since roughly one-third of all seaborne traded oil and liquefied natural gas passes through this 21-mile waterway, a 95 percent drop forces shipping companies to reroute vessels around the southern tip of Africa—adding 3,000 miles and 10-15 days to journeys that typically take weeks. This bottleneck translates directly into higher fuel costs, increased insurance premiums, and delayed deliveries of everything from electronics to automobiles, effects that will compound into consumer price increases across developed economies within months. Beyond logistics, the disruption threatens immediate energy security for nations like Japan, South Korea, and India that depend on Middle Eastern oil and gas, potentially triggering rationing or the acceleration of already-planned shifts toward alternative energy sources—consequences that reshape both geopolitics and industrial investment for years.