If Hormuz Stops, Where Does the Rest of the World’s Oil Go?

While the Strait of Hormuz often dominates headlines due to its control over 20% of the world’s oil supply, a complex network of alternative routes ensures the global economy remains functional during regional crises. The Strait of Malacca serves as a more significant maritime artery, transporting approximately 29% of seaborne oil primarily to energy-hungry markets in China and Japan. Additionally, 25% of global oil bypasses the ocean entirely, moving through vast transcontinental pipelines in Russia or being utilized domestically by the United States, which currently stands as the world’s largest oil producer. Other critical passages, including the Suez and Panama Canals, provide essential redundancy. Although the closure of a major chokepoint like Hormuz can trigger significant price volatility, the diversified nature of global energy logistics prevents a total systemic collapse by utilizing these alternative terrestrial and maritime paths.