Shortages ranging from petrol and diesel to medicines... Why is the Strait of Hormuz so critical, and what has been its global impact?

Digital Desk, New Delhi. The impact of Iran’s closure of the Strait of Hormuz is no longer limited solely to oil, petrol, and diesel. Approximately 20% of the world’s oil supply used to pass through this route—a flow that has now come to a halt. While this has driven up fuel prices, it has also begun to impact the costs of various everyday commodities.

According to experts, the general public could face a double blow of inflation in the near future. On one hand, petrol and diesel will become more expensive; on the other, the prices of food, beverages, and essential goods are also set to rise. This is because most goods are transported via trucks, ships, or aircraft—all of which rely on fuel to operate. Consequently, a rise in oil prices has a direct ripple effect on the cost of virtually every commodity.

Impact on Food and Beverages

The initial impact is likely to be felt most acutely in the food sector, particularly regarding perishable items such as milk, fruits, vegetables, fish, and meat. The Middle East is a major producer of urea, a critical fertilizer used in agriculture.

Approximately 35% of the world’s urea and over 20% of its total fertilizer supply pass through the Strait of Hormuz. This disruption could adversely affect farmers—especially during the agricultural season—potentially leading to a subsequent rise in food prices.

Impact of Helium Shortage

A significant portion of the world’s helium supply originates in Qatar and is transported via the Hormuz route. Helium is essential for manufacturing semiconductors and for cooling machinery. The world is already grappling with a shortage of this gas, a situation that could drive up the prices of electronic goods.

Furthermore, helium plays a vital role in the medical field—for instance, in cooling MRI machines. If supplies are disrupted, the costs associated with medical diagnostics and treatment could also escalate.

Impact on Aluminum and Gas

The closure of the Strait of Hormuz has triggered a sharp rise in aluminum prices. The Middle East accounts for approximately 20% of the world’s raw aluminum supply. Since aluminum is extensively used in construction, this price surge could further increase the cost of building homes. Meanwhile, natural gas prices in Europe and Asia have doubled. This will intensify pressure on the global market, and gas prices are likely to remain high in several countries, including the United States.

Plastics and Chemicals Also Become More Expensive

Products derived from crude oil—such as plastics, resins, and various other chemicals—are also being impacted. A significant portion of these supplies originates from the Middle East; in particular, chemicals like naphtha are widely used in the manufacturing of paints and cleaning agents. Now, as demand for these materials rises in other regions, their prices are consequently increasing—a trend that will ultimately affect ordinary consumers.

India is a major global producer of generic medicines and supplies them in large quantities. However, due to the ongoing conflict, certain air routes—particularly those serving Europe—have been disrupted. This could lead to delays in the supply of medicines. If this situation persists, the prices of medicines could also rise in the near future.