Putin says Russia can replace Hormuz routes as Iran crisis threatens $600 billion energy trade
Russian President Vladimir Putin has said that recent developments in Iran are having a direct impact on global energy markets and oil transportation routes, offering Russia as a solution.
"Events in Iran are already directly impacting energy markets and the transportation of oil and gas through the Strait of Hormuz. More and more states and companies are concerned not only with the speed and cost of transportation," Putin stated during a speech in Moscow on Wednesday, April 1.
The Strait of Hormuz is a narrow waterway located between Iran, the United Arab Emirates (UAE), and Oman. It is one of the most important global energy transit routes, with about 20% of the world’s oil and liquefied natural gas passing through it. The strait has been effectively closed by Iran since the United States and Israel launched attacks on 28 February. This has disrupted one of the world’s busiest oil shipping channels.
"Russia can offer the world such solutions and play an important role in shaping the new architecture of global logistics and international trade as a whole. For our partners, Russian logistic routes can be economically beneficial due to reduced transportation times as well as in terms of diversifying global transport flows," he added.
According to estimates from the US Energy Information Administration (EIA), about 20 million barrels of oil passed through the strait per day in 2025. This represents nearly $600 billion (£447 billion) in annual energy trade.
This story is written and edited by the Global South World team, you can contact us here.
