A Comparison of Oil Transportation via the Strait of Hormuz and Global Routes

Data from the US Energy Information Administration (2025), processed by the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), highlights the strategic importance of the Strait of Hormuz as a global trade route, particularly for transporting energy commodities.

On April 18, 2026, the Strait of Hormuz was closed again by Iran after having been briefly reopened the previous day. This closure has disrupted global energy supply flows.

The shutdown followed the escalation of a conflict involving the United States and Israel against Iran, which began on February 28, 2026.

“The Strait of Hormuz, which has been closed by Iran, is one of the busiest and most critical shipping lanes in the world, with around 25% of total global oil trade passing through it each day,” LPEM FEB UI wrote in its report The Impact of the Iran–US War on Indonesia’s Economy.

The research team noted that the share of global oil trade passing through the strait remained relatively stable at around 26%–28% annually over the 2020–2024 period. This volume is equivalent to approximately 19–21 million barrels per day.

Meanwhile, total global oil shipments range between 50–55 million barrels per day.

According to LPEM FEB UI, the implications of the US–Iran conflict are particularly significant for developing countries, including Indonesia.

“[Developing countries, including Indonesia] depend on stable commodity prices, foreign investment inflows, and smooth global supply chains to sustain economic growth,” the research team stated.

The impact on Indonesia can be observed across three main areas. In the real sector, export demand may decline, trade surpluses could shrink, and both domestic and foreign investment may weaken.

In the financial and external sectors, the rupiah may depreciate, capital outflows could increase, and liquidity conditions may tighten.

At the macroeconomic level, Indonesia could face slower GDP growth, rising inflationary pressures (especially from energy and food), increased fiscal strain (particularly from fuel subsidies), higher financing costs, and limited room for Bank Indonesia to cut interest rates.