Strait of Hormuz Closure: The Impact
As the US-Israel/Iran conflict closes the Strait of Hormuz, which economies bear the greatest cost?
On 28 February 2026, US-Israeli strikes on Iran triggered an effective halt to traffic through the Strait of Hormuz, sending Brent crude from $72 per barrel to around $100 within days. The Strait carries about 14.2 million barrels per day, making it the world’s most critical energy chokepoint. Asia absorbs 89% of Hormuz oil flows. India’s position is particularly acute: about 2.1 million barrels per day of its crude imports pass through the Strait, accounting for over half of total imports, while strategic reserves cover only around 45 days of demand.
IMA India’s Decoding India is a data-led series that explores the metrics shaping India’s economic and business landscape, presented through comparative visuals across Indian states or peer economies. The aim is simple: to make India’s progress easier to understand at a glance and to surface insights that matter for decision-makers.