US oil exports surge amid Hormuz crisis

The closure of the Strait of Hormuz during the 2026 Iran war has triggered a severe disruption in global energy flows, affecting about 20% of worldwide oil supplies and significant volumes of liquefied natural gas. The International Energy Agency has described the event as the largest supply disruption in the history of the global oil market.

The Strait of Hormuz is a critical transit route for Middle Eastern crude and LNG exports. Its closure has immediately reduced seaborne shipments from the region and forced importers to seek alternative suppliers to cover urgent energy needs.

Brent crude oil (UKOIL) prices surged to an average of $103 per barrel in March 2026, compared with about $70 per barrel just before the war began on February 28, 2026. This sharp increase reflects mounting concerns over the duration of the disruption and the limited spare capacity available outside the affected region.

The price move underscores how sensitive global benchmarks are to supply interruptions at key chokepoints. With a large portion of physical barrels offline, traders and end users have been forced to reprice risk and secure cargoes from less affected regions.

As the Hormuz disruption has intensified, global buyers have increasingly turned to the United States to replace lost Middle Eastern barrels. US crude exports have risen to record levels, underscoring the country’s growing role in stabilizing global supplies during crises.

Refiners and importers in multiple regions have shifted procurement strategies to lock in US cargoes, reflecting both the scale of US production and the relative security of its export routes compared with those transiting the Strait of Hormuz.

The combination of constrained Middle Eastern flows, higher Brent prices, and surging US exports is reshaping short term trade patterns in the global oil and LNG markets. Buyers that traditionally relied on shipments through Hormuz are diversifying supply sources to manage risk.

While the duration of the disruption is unclear, the IEA’s characterization of the event as an unprecedented supply shock highlights the strain on the market. In this environment, the United States is functioning as a key backstop, with its record crude exports helping to partially offset the loss of volumes from the Gulf.