Strait of Hormuz Disruption Exposes Fragility of Global Energy Supply Routes

A new report by think tank Third Generation Environmentalism finds that over two-thirds of seaborne energy trade depends on a small number of critical chokepoints, with recent disruptions at the Strait of Hormuz illustrating the structural vulnerability of a fossil fuel-based global energy system. The report calls for accelerated electrification and clean energy adoption to reduce long-term import dependence.

The global energy system continues to face significant security risks despite adequate overall supply of oil and gas, according to an analysis by Third Generation Environmentalism. More than two-thirds of seaborne energy trade passes through a handful of maritime chokepoints, including the Strait of Hormuz, the Strait of Malacca and the Suez Canal. The Strait of Hormuz, a 33-kilometre maritime passage carrying roughly one-fifth of global oil and LNG flows, has been experiencing shipping disruptions linked to regional conflict, raising concerns about supply continuity and price stability.

Asian economies including India, Japan, South Korea and China are among the most exposed to disruptions at these chokepoints, given their heavy dependence on Middle East crude oil and LNG imports. India has already felt the effects of tighter LPG supply and rising fuel costs following the West Asia conflict. The report argues that energy security in the current geopolitical environment cannot be achieved through supply diversification alone, but requires structural reduction of import dependence through domestic clean energy deployment.

The report recommends accelerated investment in electrification, renewable energy and efficiency across Asian economies as the most effective long-term response to energy security risks. In the short term, emergency response frameworks and strategic petroleum reserves provide limited buffers. India's government has already introduced a range of crisis measures including excise duty cuts, fuel rationing and temporary kerosene reintroduction, but analysts argue these tactical responses must be accompanied by a strategic acceleration of the energy transition.

Key figure — Two-thirds of global seaborne energy trade depends on a few key maritime chokepoints