Nearly 70 Percent of Global Oil Supply Moves Through Strategic Sea Routes
LONDON
Nearly 70% of the world’s oil demand moves through a small number of narrow maritime passages known as chokepoints. These routes handle more than 100 million barrels of oil per day, making them essential to global energy trade.
Among the most important routes are the Strait of Malacca and the Strait of Hormuz. Tankers also use the Cape of Good Hope as an alternative path.
Recent geopolitical tensions have highlighted the vulnerability of these sea lanes. After joint military strikes by the United States and Israel on Iran, shipping activity through the Strait of Hormuz dropped sharply as Iranian forces began targeting vessels in the area.
Maritime Chokepoints Play a Critical Role
Maritime chokepoints are narrow passages that connect major shipping routes. Oil tankers transport crude oil, refined petroleum products, and liquefied natural gas through these corridors.
Any disruption in these locations can delay shipments, increase freight costs, and push global energy prices higher. Although ships can sometimes use alternate routes, several chokepoints have very limited substitutes.
Data from the International Energy Agency and the US Energy Information Administration shows that global oil demand averaged about 104 million barrels per day during the first half of 2025. Roughly 80 million barrels per day of that supply moved through maritime trade.
Strait of Malacca Remains the Busiest Oil Route
The Strait of Malacca connects the Indian Ocean with the Pacific Ocean. Because it offers the shortest path between Middle Eastern oil exporters and Asian markets, it serves as the world’s busiest oil transit route.
During the first half of 2025, about 23.2 million barrels of oil per day passed through the strait. That figure equals roughly 22% of global oil demand and 29% of maritime oil trade.
Most shipments consist of crude oil. However, tankers also transport refined petroleum products. Much of the oil moves toward East Asia, with China accounting for about 48% of imports passing through the route. The United States also trades oil along the route at around 1 million barrels per day.
Strait of Hormuz Remains Key Gateway for Gulf Oil
The Strait of Hormuz ranks among the most strategic energy corridors in the world.
During the first half of the previous year, tankers transported about 20.9 million barrels per day through the strait. This volume accounted for roughly 20% of global oil consumption and nearly 25% of seaborne oil trade.
About 5.5 million barrels per day consisted of refined petroleum products. This highlights the Gulf region’s importance as a major exporter of fuels such as diesel and jet fuel.
Around 80% of shipments travel toward Asian markets. Countries including Japan, South Korea, China, and India depend heavily on these supplies.
Meanwhile, the United States imported about 400,000 barrels per day from Persian Gulf countries through the strait during the first half of last year.
However, recent military tensions have sharply reduced shipping traffic. According to the UK Maritime Trade Operations, an average of 138 commercial vessels normally pass through the strait each day. Yet on March 7, only one commercial vessel crossed the waterway, and no oil tankers were recorded.
Bab al-Mandeb Strait and Suez Canal
The Bab al-Mandeb Strait connects the Red Sea with the Indian Ocean. Together with the Suez Canal, it forms a vital maritime corridor linking Asia and Europe.
Oil shipments averaged 4.9 million barrels per day through the Suez Canal and 4.2 million barrels per day through Bab al-Mandeb during the first half of 2025.
Attacks by the Houthi movement on vessels in the Red Sea since late 2023 have forced many ships to avoid the route.
Danish Straits and Turkish Straits
The Danish Straits carried about 4.9 million barrels per day of oil and petroleum products in early 2025. Before the Russia Ukraine War and European sanctions on Russian oil, this route played a key role in Russia’s exports to Europe.
Another important passage is the Turkish Straits, which connect the Black Sea with the Mediterranean.
About 50,000 vessels pass through the straits each year. During the first half of last year, roughly 3.7 million barrels per day of oil moved through these waters.
Panama Canal Handles Fuel Shipments
The Panama Canal carries about 2.3 million barrels per day of oil and petroleum products. Most of that volume consists of refined fuels.
Because smaller tankers can navigate the canal’s locks, the route plays an important role in transporting refined fuels and liquefied natural gas.
Cape of Good Hope Becomes Alternative Route
Although it is not a chokepoint, the Cape of Good Hope has become a key alternative path for tankers.
Following attacks on shipping in the Red Sea, many vessels have diverted away from the Suez Canal and Bab al-Mandeb corridor. As a result, oil shipments around the Cape increased by more than 45%, reaching about 9.1 million barrels per day during the first half of 2025.
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