Malacca and Hormuz handle about 24% and 22% of global oil supply, respectively

  • The Strait of Malacca is the world’s most important oil chokepoint, carrying about 24–25% of global oil supply in recent years.
  • The Strait of Hormuz moves around 20–23% of global oil supply, making it the second-largest energy transit chokepoint.
  • The Cape of Good Hope carries about 9–10% of global oil flows, and its share tends to increase when other chokepoints face disruptions.
  • The Bab el-Mandeb saw a sharp drop in oil flow share from about 9% in 2023 to around 4% in 2024, reflecting security concerns affecting shipping in the Red Sea corridor.
  • Oil transported through the Suez Canal and the SUMED pipeline system dropped significantly after 2023, falling from about 8.6% to below 5%, showing how quickly routes shift during geopolitical tensions.
  • The Strait of Malacca’s share has remained consistently high and stable, indicating its structural importance to Asian energy demand.
  • Alternative routes like the Cape of Good Hope in South Africa are longer but strategically crucial, especially when Middle Eastern chokepoints become unstable.

News that the Strait of Hormuz has been blocked by Iran immediately sends shockwaves through global energy markets. The reason becomes clearer when you look at how global oil actually moves. Roughly one-fifth of the world’s oil supply passes through this narrow waterway, making it one of the most critical energy arteries on the planet. When a route carrying that much supply is disrupted, the world has to quickly search for alternatives, and that’s where routes like the Cape of Good Hope suddenly become very important.

When one node becomes unstable, traffic often shifts elsewhere, which explains why alternative passages outside conflict zones can suddenly see increased usage. The Cape of Good Hope offers one such detour. Unlike the Middle Eastern chokepoints currently affected by tensions linked to the Iran–US/Israel conflict and broader regional instability, this route bypasses the entire region. The trade-off, however, is distance. Tankers must travel thousands of extra kilometres around southern Africa, raising shipping costs and delivery times. But when strategic waterways face disruptions, reliability often matters more than speed.

Source:

U.S. Energy Information Administration (EIA)

Period:

2020-2025
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