Strait of Hormuz as a Critical Chokepoint
The Strait of Hormuz, a narrow waterway between Iran and Oman, is the world's most strategically significant energy chokepoint. Approximately 20% of global LNG exports transit the strait, including nearly 60% of the LNG India uses for urea manufacturing (sourced from Qatar's North Field). The strait also handles 20–30% of global fertiliser trade and 35% of global urea exports. Any disruption — through conflict, blockade, or force majeure — immediately propagates into energy markets, fertiliser supply chains, and food prices worldwide.
- 83% of LNG transiting Hormuz is destined for Asian markets (China, India, South Korea account for 52%)
- India's import exposure: ~66% of imported urea and ~50% of total LNG imports come from the Gulf region
- 30 of India's 32 urea plants use natural gas or naphtha as feedstock
- Petronet LNG's force majeure notice (March 3, 2026): declared inability to safely transit Hormuz for Qatari LNG vessels
- Global urea price post-conflict: rose from $482.5/tonne (Feb 27) to $720/tonne by mid-March — approximately 49% increase
● Tracked since March 30, 2026 · last seen June 13, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief