The Strait of Hormuz is an important artery through which about one-fifth of the world’s oil flows, and has a serious impact on the oil market. This was also confirmed by S&P Global Energy, which said that Brent crude has risen by $10 per barrel in the past few weeks and that if the Strait of Hormuz closure continues for a long time, it will see catastrophic consequences and a significant increase in oil prices.
Andy Critchlow, the agency’s media director, said in an interview with Al Arabiya: “The oil market remains sustainable due to the presence of resources that can supply the market, such as the US oil sector, which has not been able to supply until now, as well as the presence of large reserves, such as in China.”
Many challenges and markets await
“Although the Emirates also has exportable reserves, there are many challenges in the oil sector in the region, with a lack of storage space being an issue, which will lead to lower production,” he said.
He pointed to several challenges facing gas importing countries, including Russian President Vladimir Putin’s threat to cut off supplies to Europe and Qatar’s production suspension.
He explained that the market is awaiting further details on US President Donald Trump’s statement regarding the protection of oil and gas vessels in the Strait of Hormuz.
He said the market was keeping a close eye on the fate of oil shipments near Asia, as the United States has signaled its intention to continue its conflict with Iran beyond the Middle East.
Diesel and gasoline export suspension
China has asked major oil refiners to suspend diesel and gasoline exports due to the risk of supply shortages caused by Middle East wars, in response to the paralysis of movement in the strategic Strait of Hormuz, which straddles the Indian Ocean and the Gulf, and the apparent strain on China’s energy supplies, which rely heavily on crude oil from the region, Bloomberg reported.
According to Bloomberg, officials from China’s economic planning agency, the National Development and Reform Commission, met with representatives of oil refineries and verbally urged them to immediately suspend shipments of refined products.
Bloomberg also reported that at least one Japanese oil refiner halted exports to focus on the domestic market, and Thailand announced a suspension of fuel shipments.
It is worth noting that the Middle East region accounted for approximately 57% of China’s direct seaborne crude oil imports in 2025, according to Kpler Analytics Group.
fear drives prices up
Continued disruptions to the flow of oil and gas through the Strait of Hormuz fueled concerns about supply shortages in global markets, sending oil prices higher during last week’s trading as war broke out between the United States, Israel and Iran.
Brent crude rose $1.67 ($2.05) to $83.07 per barrel, while US West Texas Intermediate crude rose $1.94 (2.60%) to $76.60.
This reflects expectations of continued supply disruptions in the short term, as well as reduced production at some facilities and a concentration of hundreds of tankers in the region, which is helping to keep prices high.
The Strait of Hormuz is an important artery through which nearly one-fifth of the world’s oil flows, and has a significant impact on the oil market. This was confirmed by the “S&P Global Energy” agency, which said that Brent crude oil has risen by $10 per barrel in recent weeks and that if the Strait of Hormuz closure continues for a long time, we will see catastrophic consequences and a significant increase in oil prices.
“Oil markets have remained resilient so far, thanks to the presence of sources that can supply previously unserved markets, such as the U.S. oil sector, as well as large inventories in countries such as China,” said Andy Kreklow, the agency’s media director, in an interview with Al Arabiya.
Multiple challenges and markets await
He added: “Although the UAE also has exportable stocks, there are many challenges for the region’s oil sector as there are issues with lack of storage space, leading to lower production.”
He warned of several challenges facing gas importing countries, including Russian President Vladimir Putin’s threat to cut supplies to Europe and Qatar’s production suspension.
He clarified that the market is still waiting for further details on US President Donald Trump’s statement regarding the protection of oil and gas vessels in the Strait of Hormuz.
He noted that the market is closely monitoring the fate of crude oil shipments near Asia after the United States announced its intention to continue its conflict with Iran outside the Middle East.
Diesel and gasoline export suspension
According to Bloomberg, in an apparent response to the traffic paralysis in the Indian Ocean and the strategic Strait of Hormuz in the Gulf, and the weight of China’s energy supply, which relies heavily on crude oil from the region, China has asked major oil refiners to suspend exports of diesel and gasoline due to the risk of supply shortages caused by wars in the Middle East.
According to Bloomberg, officials from China’s National Development and Reform Commission, which is in charge of economic planning, met with representatives of oil refineries and verbally urged them to immediately halt shipments of refined products.
Bloomberg also reported that at least one Japanese oil refiner halted exports to focus on the domestic market, and Thailand announced a suspension of fuel shipments.
It is notable that the Middle East will account for approximately 57% of China’s direct seaborne crude oil imports in 2025, according to the analysis group Kpler.
fear drives prices up
Oil prices rose in last week’s trading on the back of an escalating war between the United States, Israel and Iran, as the flow of oil and gas through the Strait of Hormuz continues to be disrupted, raising concerns about supply shortages in global markets.
Brent crude oil rose $1.67, or 2.05%, to $83.07 per barrel, and West Texas Intermediate (WTI) crude oil rose $1.94, or 2.60%, to $76.60 per barrel.
This is due to production cuts at some facilities, the accumulation of hundreds of tankers in the region, and expectations that supply disruptions will continue in the short term, helping to keep prices high.
