MENAAP World Bank report in 2026

The effective closure of the Strait of Hormuz disrupted a route through which around one-fifth of globally traded oil and liquefied natural gas is normally transported. Gulf oil production fell from about 26 million barrels per day before the conflict to about 16 million in March. Tanker traffic through the strait and from several Gulf exporters fell to a fraction of its pre-conflict level.

For hydrocarbon exporters affected by the closure of the Strait of Hormuz, lower export volumes have translated into substantial economic losses.

The Strait of Hormuz disruptions curtailed oil and gas production and shipments. The resulting output losses track closely with each country’s reliance on the strait as its sole export corridor.