The closure of the Strait of Hormuz has raised oil and gasoline prices and will affect many industries beyond fuel. The waterway connects the Persian Gulf to global markets, and roughly 20% of global oil and liquefied natural gas normally passes through it. When that flow is constrained, higher energy costs spread slowly through production, transport and logistics.
Early signs are visible: jet fuel is tightening and diesel prices are rising across Asia. China ordered refineries to stop exporting fuel, which created shortages and pushed up shipping costs for US imports such as consumer electronics and pharmaceuticals. Naphtha, used to make plastics and other products, moves through the strait in large volumes; a large share of Middle Eastern polyethylene exports goes this way.
Other sectors are exposed. Aluminum smelters need steady low‑cost energy, and the Middle East supplied roughly 21% of US unwrought aluminum imports in 2025. Fertilizer makers rely on natural gas; Persian Gulf states account for one‑third of global urea exports and half of global sulfur exports, and urea prices at the New Orleans hub have already climbed sharply. Experts warn disruptions in a single link can cascade across complex supply chains, and some effects may show up in six to 12 months.
Difficult words
- closure — the act of closing a route or place
- constrain — kept limited or restricted in amount or movementconstrained
- refinery — plant where crude oil is processedrefineries
- naphtha — light oil used to make plastics and chemicals
- polyethylene — a common plastic made from ethylene
- logistics — planning and movement of goods
- urea — a fertilizer chemical used worldwide
- cascade — to cause a series of related effects
- liquefied natural gas — natural gas cooled to liquid for transport
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Discussion questions
- How could rising jet fuel and diesel prices affect everyday products you buy?
- What steps can businesses take to manage problems in long supply chains after a disruption?
- If a key waterway closes, what should governments or companies do first to reduce economic damage?
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