Thought Leadership
The cost of energy supply chain bottlenecks on the global economy
The Strait of Hormuz has been effectively closed for three weeks. With around 15 million barrels per day of oil exports and 11 billion cubic feet of gas normally passing through the Strait wiped from global markets, the world continues to grapple with the collapse of trade through the Strait of Hormuz and mounting infrastructure damage.
India, Hormuz, and the imperative of energy diversification
The Strait of Hormuz remains the world’s most consequential energy chokepoint. Nearly 21 million barrels per day of oil— about one-fifth of global consumption — passes through this narrow maritime corridor connecting the Gulf to the Indian Ocean. For India, which imports roughly 85 percent of its crude oil, instability in this region represents a persistent macroeconomic vulnerability.
