Strait of Hormuz crisis cuts oil exports, lifts oil majors' profits

The conflict sparked by the United States and Israel against Iran has closed the Strait of Hormuz, removing roughly 20% of global oil supply. Prices rose to about $120 per barrel and the disruption spread to other energy and industrial commodities. Export volumes of liquefied natural gas fell 95%, urea 83%, methanol 80% and ammonia 75%, with a combined 54% drop in twelve key products compared with the previous year.

Importers most dependent on Gulf supplies saw sharp declines: Japan’s crude oil imports fell 64%, South Korea 23% and Malaysia 41%. Thailand managed a 62% increase by securing alternative sources, but overall diversification has not fully offset the losses. The supply shock boosted earnings for the world’s largest oil companies, whose first‑half 2026 profits exceeded $150 billion – a 60% rise on the prior year. Saudi Aramco earned $65 billion, while Exxon Mobil and Chevron posted gains of 26% and 138% respectively.