Hormuz Strait Oil Supply Impacts Asia, Primarily China

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Adi Ahdiat 23/06/2025 14:50 WIB

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According to the U.S. Energy Information Administration, disruptions to oil shipments through the Strait of Hormuz would most significantly impact Asia, primarily China.

Destination Countries for Oil Supply Shipments via the Strait of Hormuz (Q1 2025)

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Hormuz Strait Oil Supply Impacts Asia, Primarily China

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Destination Countries for Oil Supply Shipments via the Strait of Hormuz (Q1 2025)

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The Iranian Parliament approved a proposal to close the Strait of Hormuz following a United States (US) attack on Iranian nuclear facilities on Saturday, June 21, 2025.

"Parliament has concluded that the Strait of Hormuz should be closed," said Major General Esmaeli Kowsari, a member of the Iranian Parliament's National Security Commission, as reported by Iran Press TV, quoted by Antara (June 23, 2025).

"The final decision on this matter will be made by the Supreme National Security Council," he added.

The Strait of Hormuz is a shipping lane that passes through part of Iranian territory, which is currently at war with Israel and the US.

According to the U.S. Energy Information Administration (EIA), the Strait of Hormuz plays a crucial role in global oil trade.

"Large volumes of oil flow through the strait, and very few alternative options exist to move oil out of the strait if it is closed," the EIA stated in its report, Amid regional conflict, the Strait of Hormuz remains critical oil chokepoint (June 16, 2025).

"The inability of oil to transit a major chokepoint, even temporarily, can create substantial supply delays and raise shipping costs, potentially increasing world energy prices," they stated.

According to EIA data, in the first quarter of 2025, the volume of oil supplies shipped through the Strait of Hormuz reached 20.1 million barrels per day (a combination of crude oil, condensate, and oil products).

This figure is equivalent to 19.69%, or approximately one-fifth, of total global oil consumption.

In the first quarter of 2025, oil supplies shipped via the Strait of Hormuz were mostly destined for China, with a volume of 5.35 million barrels per day (crude oil and condensate combined, excluding oil products).

During the period 2020-2024, China also consistently remained the largest destination for oil shipments through this route, followed by India, South Korea, and Japan.

Shipments to countries outside Asia, such as Europe and the United States, were minimal, as shown in the graph.

"China, India, Japan, and South Korea were the top destinations for crude oil moving through the Strait of Hormuz to Asia. These markets would likely be most affected by supply disruptions at Hormuz," said the EIA.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Hormuz Strait Oil Supply Impacts Asia, Primarily China

Hormuz Strait Oil Supply Impacts Asia, Primarily China

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Hormuz Strait Oil Supply Impacts Asia, Primarily China

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