Global oil trade hinges on seven strategic maritime chokepoints

The vast majority of the world's seaborne oil trade—more than 90%—funnels through just seven strategic maritime chokepoints, according to data from the International Energy Agency and the US Energy Information Administration. With global oil demand hovering around 104 million barrels per day in early 2025, approximately 80 million barrels daily move by sea, much of it traversing these narrow corridors that connect major producing regions to consumer markets.

These passages, ranging from the Strait of Malacca in Southeast Asia to the Panama Canal in Latin America, serve as the arteries of the global energy system. When functioning normally, they enable the steady flow of crude, refined products, and liquefied natural gas that powers economies worldwide. However, their narrow geography makes them vulnerable to disruption from conflicts, geopolitical tensions, or maritime incidents.

Strait of Hormuz under pressure

The Strait of Hormuz, linking the Persian Gulf to global markets, stands as one of the most critical energy gateways, handling approximately 20.9 million barrels daily in the first half of 2025. This volume represents about one-fifth of global oil consumption and one-quarter of seaborne oil trade. The waterway is particularly vital for Asian economies, with Japan, South Korea, China, and India heavily dependent on supplies transiting this route.

Recent military tensions have dramatically impacted traffic through the strait. Following US and Israeli strikes on Iran on Feb. 28 and subsequent actions by Iranian forces targeting vessels linked to the US and Israel, commercial shipping has declined sharply. UK Maritime Trade Operations data showed that on March 7, only one commercial vessel passed through the strait, with no oil tanker transits recorded—a dramatic drop from the historical daily average of 138 ships.

Malacca: world's busiest oil route

The Strait of Malacca, connecting the Indian Ocean with the Pacific, ranks as the world's largest oil transit chokepoint. About 23.2 million barrels per day passed through this narrow waterway in the first half of 2025, accounting for roughly 22% of global oil demand and 29% of seaborne oil trade. More than 70% of these shipments consist of crude oil, much of it flowing from Middle Eastern producers to East Asian markets, with China alone receiving about 48% of imports transiting the strait.

The strategic importance of Malacca extends beyond Asia, with the US also moving approximately 1 million barrels per day through the route, underscoring its global significance.

Turkish Straits: Europe's vital link

The Turkish Straits—comprising the Bosphorus and Dardanelles—serve as a crucial maritime corridor connecting the Black Sea with the Mediterranean. Approximately 50,000 vessels navigate these challenging waterways annually, carrying about 3.7 million barrels per day of crude oil and petroleum products in the first half of 2025. This volume represents roughly 5% of global seaborne oil trade, highlighting the straits' importance for regional and international energy markets.

Red Sea disruptions reshape shipping patterns

The Bab al-Mandeb Strait and Suez Canal, forming a key artery between Asia and Europe, have faced significant disruption since late 2023 due to Houthi attacks on vessels linked to Israel. Oil shipments through the Suez Canal averaged 4.9 million barrels daily in early 2025, while Bab al-Mandeb saw about 4.2 million barrels per day. However, many vessels have rerouted around South Africa's Cape of Good Hope as an alternative, with oil transport around the Cape surging by more than 45% to approximately 9.1 million barrels per day—though at the cost of longer voyages and higher shipping expenses.