The United States exported roughly 4.0 million barrels per day (bpd) of crude oil in 2025, a 3% drop from the previous year despite record domestic production of 13.6 million bpd, the EIA said.

The Netherlands topped the list of U.S. oil importers, purchasing about 419 million barrels in 2025, accounting for roughly 10.7% of total exports.

Much of that oil flows through Rotterdam, one of the world’s largest energy hubs, where crude is refined or redistributed across Europe.

Mexico followed closely with 398 million barrels, while Canada ranked third at 324 million barrels, highlighting the continued strength of North American energy trade ties.

Other major buyers included South Korea, Japan, China and India, reflecting sustained demand from Asia even as regional flows shifted.

Top buyers of U.S. oil in 2025 (millions of barrels)

Europe remains dominant market

Europe has been the leading destination for U.S. crude since 2023, driven largely by efforts to replace Russian supplies following the Ukraine war.

However, exports to Europe fell by around 7% in 2025 as higher output from OPEC countries displaced some U.S. volumes.

Within the region, the United Kingdom recorded one of the steepest declines, with imports dropping roughly 35%, while the Netherlands increased purchases, offsetting some of the regional fall.

Exports to Asia and Oceania also weakened , particularly to China and Singapore. U.S. shipments to China plunged sharply amid trade tensions and competition from discounted oil supplied by countries such as Russia and Iran.

By contrast, India and Japan increased imports of U.S. crude, signalling a partial rebalancing of demand within the region.

Despite the 2025 decline, U.S. crude exports remain historically high. Since the lifting of a decades-long export ban in 2015, shipments have surged dramatically, rising to levels roughly 85 times higher than in 2011.

The United States has also maintained its status as a net petroleum exporter in recent years, reflecting strong production growth and expanding infrastructure.

China is shown as the largest single destination, taking roughly 23% of flows, followed by India at 13%, with Japan, South Korea and Southeast Asia also accounting for significant shares.

According to the U.S. Energy Information Administration , around 84% of crude oil and condensate shipped through the Strait of Hormuz in 2024 was destined for Asian countries.

China, India, Japan and South Korea alone accounted for roughly 69% of total flows, making them the most exposed to any disruption.

The International Energy Agency estimates that nearly a third of globally traded crude oil passes through the strait, with China and India together receiving about 44% of these exports.

The Strait of Hormuz handles around 20 million barrels of oil per day, roughly a fifth of global petroleum consumption, making it the most important oil transit chokepoint in the world.

It also carries a significant share of global liquefied natural gas, particularly exports from Qatar, one of the world’s largest LNG suppliers.

Despite its importance, alternatives remain limited. Pipelines in Saudi Arabia and the United Arab Emirates can bypass part of the route, but cannot fully replace their capacity in the event of a disruption.

By contrast to Asia, Western economies account for a much smaller share of direct imports.

The United States and Europe together receive less than 10% of oil flows through the strait, reflecting increased domestic production in the U.S. and diversified supply chains in Europe.

In 2024, the U.S. imported only about 7% of its crude oil from Persian Gulf countries via the strait, highlighting its reduced dependence compared with previous decades.

The Strait’s strategic importance has made it a recurring focal point of geopolitical tension.

Recent conflicts involving Iran, Israel, and the USA have once again highlighted the vulnerability of global energy supply chains, with shipping disruptions triggering price volatility and raising fears of broader economic fallout.

Roughly a fifth of the world’s oil consumption passes through the narrow waterway between Iran and Oman, making it a critical artery for global markets and a persistent geopolitical flashpoint.

Recent breakdowns of oil and gas shipments through the strait show Saudi Arabia accounting for the largest share at approximately 28%, followed by Iraq at 18%. The United Arab Emirates and Qatar each contribute about 14%, while Iran and Kuwait supply around 11% each. Bahrain accounts for a smaller share at roughly 6%.

The distribution reflects the concentration of hydrocarbon production in the Gulf region, where some of the world’s largest proven oil reserves are located.

According to The New York Times, disruptions in the Strait of Hormuz have long been viewed as a worst-case scenario for energy markets, with even minor incidents capable of triggering price spikes and supply fears.

At its narrowest point, the strait is just 21 miles (34 km) wide , with shipping lanes only a few miles across in each direction. This physical constraint leaves little margin for error in the event of military escalation, accidents or blockades.

The waterway serves as the primary export route for oil producers in the Persian Gulf, particularly for countries whose infrastructure is heavily oriented towards maritime transport.

The New York Times has reported that tensions involving Iran, including threats to restrict passage, have repeatedly raised alarms among Western governments and energy traders.

Efforts to diversify export routes, including pipelines that bypass the strait, have expanded in recent years. However, The New York Times notes that these alternatives still account for only a fraction of total export capacity, leaving the majority of flows dependent on the chokepoint.

Why the Strait of Hormuz is the big pressure point

Oil prices have climbed sharply as tankers and insurers reassess the risks of moving through the Strait of Hormuz , the narrow waterway linking the Gulf to global markets. Roughly a fifth of global oil supply depends on the route, making any sustained disruption a global price shock.

Shipping has also taken a major hit. Danish container giant Maersk has suspended services on routes affected by the security situation, one sign that supply-chain disruption is spreading beyond the energy market.

Silent evacuations

Commercial aviation has also been hammered by airspace closures and security restrictions. 

Governments are also evacuating people out of harm’s way. The Financial Times reported that Dubai International has been operating at a fraction of normal capacity under military-controlled corridors, while Emirates said it aims to restore its Dubai routes within days as air travel begins to recover. The US State Department has been offering assistance, including charter flights and ground transport, and US officials say tens of thousands of Americans have left the region as commercial travel remains patchy.

"It is being done quietly, but seamlessly," Trump said in a social media post. "Several flights have safely returned hundreds of Americans to the United States with additional flights scheduled to take place over the coming days, as security conditions allow," Assistant Secretary of State for Global Public Affairs Dylan Johnson said

Germany has also been adjusting its posture in the region as Berlin previously moved some troops out of Erbil in northern Iraq, citing the rising tensions.

A new ripple effect in other sectors

The economic fallout is being felt far from the Gulf. In Sri Lanka, tea exporters have warned that the Middle East conflict is disrupting shipments and payment channels, putting pressure on one of the country’s key export earners and an already-fragile recovery. At this rate, could lose at least $10 to $15 million a week in the tea industry.

Sri Lanka has also been pulled into the conflict’s maritime shadow after reports that the Iranian frigate IRIS Dena sank following a US submarine strike off the island’s southern coast, an incident that has heightened regional anxiety along Indian Ocean shipping lanes.

What next?

With oil and shipping costs rising, the next signals investors and governments are watching include whether Gulf export routes stay disrupted, whether major carriers restore normal schedules, and whether diplomatic efforts, including via intermediaries, can slow the fight before energy and trade shocks worsen.

Iran has launched missile and drone attacks across parts of the Gulf, while Israel has continued strikes in Iran and intensified operations against Hezbollah in Lebanon, according to the Associated Press.

The above map shows that Japan, South Korea, India and China would be among the biggest losers if the Strait of Hormuz were blocked, reflecting their heavy reliance on crude oil shipped from the Persian Gulf.

The Strait of Hormuz, located between Iran and Oman, connects the Persian Gulf to the Arabian Sea and is widely considered the most critical oil transit chokepoint in the world. According to energy analytics firm Kpler, roughly 20% of the world’s oil supply passes through the strait every day, making it essential to global energy markets.

Any disruption would send shockwaves through global trade, pushing oil prices higher and threatening energy security for countries that rely heavily on Gulf crude.

The waterway is only about 33 kilometres wide at its narrowest point, meaning shipping lanes are particularly vulnerable to military conflict or blockades.

Japan appears to be the most vulnerable major economy in the graphic. Around 75% of its crude oil imports pass through the Strait of Hormuz, equivalent to roughly 1.6 to 1.8 million barrels per day.

The Japan Times has reported that the country remains deeply dependent on Middle Eastern oil despite efforts to diversify energy sources since the 2011 Fukushima disaster. Much of Japan’s crude still comes from Gulf producers such as Saudi Arabia, the United Arab Emirates and Kuwait.

Because Japan imports nearly all of its oil, any disruption in the strait could immediately affect fuel prices, electricity costs and industrial production.

South Korea follows closely behind Japan in exposure. Around 65% of its crude oil imports transit the Strait of Hormuz, or approximately 1.5 to 1.7 million barrels per day.

India, the world’s third-largest oil importer, would also face major disruptions. Roughly half of India’s oil imports pass through the strait, amounting to 2.5 to 2.7 million barrels per day, according to energy shipping data cited by Kpler.

India’s dependence on Gulf crude has grown alongside its rapidly expanding economy. Analysts note that energy security remains a key concern for the country as demand for fuel continues to rise.

Reporting from The Better India has highlighted how India has been trying to reduce vulnerability by increasing strategic petroleum reserves and diversifying supply sources, including imports from Russia and the United States.

China, the world’s largest crude oil importer, is also significantly exposed. About 48% of Chinese oil imports pass through the Strait of Hormuz, equivalent to around 5.4 to 5.6 million barrels per day.

However, China’s broader supply network gives it slightly more flexibility than other Asian economies. Beijing imports oil from a wide range of producers, including Russia, Brazil and West Africa.

While Asian economies are the most exposed, the entire world would feel the effects of a Hormuz disruption.

Swiss private bank Union Bancaire Privée (UBP) has warned that any closure of the strait could trigger a sharp surge in global oil prices because such a large share of supply flows through the corridor.

UBP analysts say that even a temporary disruption could push oil prices significantly higher and disrupt global supply chains.

The impact would extend far beyond the countries that directly import Gulf crude, affecting everything from transport costs to food prices worldwide.

According to data compiled from Kpler, The National News, Investopedia, and CBC, Venezuela’s crude oil production fell from around 2.7 million barrels per day in 2015 to a low of roughly 569,000 barrels per day in 2020.

This collapse was driven by years of underinvestment, mismanagement at state oil company PDVSA, the loss of skilled labour, and increasingly strict US sanctions. Investopedia notes that sanctions restricted exports, access to finance, and the import of diluents needed to process Venezuela’s heavy crude.

From 2021, production began to edge upwards. Output rose to around 636,000 barrels per day in 2021 and 716,000 in 2022, signalling the end of the industry’s free fall.

The rebound continued in 2023, with production nearing 783,000 barrels per day, before climbing further to roughly 921,000 barrels per day in 2024. Kpler tracking shows improved operational stability and higher export volumes, particularly to Asia and the United States.

A key factor behind the recovery has been limited sanctions relief. US licences allowing companies such as Chevron to operate in Venezuela have helped stabilise fields and boost exports altough the company is seeking an expanded operating licence in Venezuela now.

Even so, Venezuela’s output remains less than half of what it was a decade ago. Infrastructure decay and lack of investment continue to cap growth, despite the country holding the world ’s largest proven oil reserves.

Venezuela is projected to boost oil production toward roughly 1.2 million barrels per day by 2026 if US sanctions are significantly eased, but that projection now sits against a backdrop of heightened US involvement following the capture of President Nicolás Maduro and escalating oversight of Venezuela’s oil exports and industry.

In the week since Maduro’s arrest during a US operation, Washington has asserted influence over the country’s crude sector, including seizing sanctioned tankers and controlling oil sales and revenues, part of a broader effort to reshape Caracas’s governance and energy policy while maintaining sanctions until conditions such as democratic reforms are met.

Maduro said US measures reflected an attempt to exert control beyond its borders, warning that such an approach undermines international relations. He added that focusing on external intervention, rather than domestic economic and social challenges, would amount to poor leadership.

The Venezuelan leader also referenced plans in Congress to advance legislation aimed at protecting the country’s vessels and safeguarding oil trade. According to Maduro, the proposed law would reinforce international agreements that prohibit piracy, attacks on commercial shipping and other crimes affecting global trade.

His comments follow an announcement by President Trump that the United States would impose a blockade on what it calls “sanctioned oil tankers” entering or leaving Venezuela. Washington has accused the Maduro government of using oil revenues to finance drug trafficking , terrorism and human trafficking, allegations that Caracas has repeatedly rejected.

The operation was led by Sasol Petroleum Mozambique, Limitada, in partnership with the Mozambican government and the state-owned National Hydrocarbons Company (ENH) under a Production Sharing Agreement (PSA).

The IPF, among the most advanced facilities of its kind in Africa, is designed to produce up to 30,000 tonnes of LPG per year. According to Sasol, this could reduce Mozambique’s LPG imports by approximately 70%, making gas supply more affordable, reliable, and locally available, as in countries like Nigeria , Algeria, and Egypt

“This is a significant step towards monetising natural gas within the country and creating greater value for the domestic market,” said Ovídio Rodolfo, Sasol’s managing director in Mozambique.

The LPG is sourced from natural gas reserves in the Inhassoro and Govuro fields and processed through advanced separation and treatment systems that ensure cleaner, safer fuel for household use.

On the African continent, Algeria remains the continent’s largest LPG producer , with over 8.1 million tonnes annually, accounting for more than half of Africa’s total output. Nigeria follows with about 1 million tonnes, despite facing logistical and infrastructural hurdles in domestic distribution. Egypt produces 1.9 million tonnes per year, supported by robust infrastructure.

Mritunjay, a 19-year-old student, said the new tariffs are too extreme and unnecessary. 

“Trump’s approach seems overly radical,” he told AFP, adding that a smaller increase would have been more reasonable. 

“Russia has historically been India’s evergreen friend, offering support even during the 1971 war . Such radical measures are not appropriate.”

Businessman Shailendra Mishra, 38, said the impact on exports and prices will be felt in the short term, but India’s economy remains strong. 

“Things will get expensive, and exports will decrease. But India is growing tremendously. It’s not within the capacity of any country to shake India now,” he said. 

Mishra also said the tariff hike reflects a pattern of political pressure. 

“Trump keeps initiating provocations to dominate others, like Russia and Israel,” he said. “He increased tariffs to push India away from buying oil from Russia. But our role in the world has always remained neutral, whether in World War I or World War II.”

Nitya Rastogi, a 20-year-old student, said Trump’s actions could backfire. 

“India is a massive market. His decisions could hurt him as well,” he said. He also rejected Trump’s recent remarks calling India a “dead economy.” “How is India a dead economy? We’ve grown to become the third-largest developing economy.”

The tariff hike adds to existing tensions in US-India trade, with both sides navigating complex geopolitical and economic interests.

India is the world’s largest democracy, the fourth-largest economy, and the fastest-growing.

Iran has withdrawn a proposed internet censorship bill after political and public backlash. Introduced after a brief conflict with Israel, the bill aimed to penalise "false" online content but drew criticism for threatening civil liberties and expanding censorship. The move underscores tensions in Iran between national security and digital rights, with critics warning the bill's vague terms could worsen repression in one of the world’s most restrictive online environments.

Iran’s oil exports surge

Despite sanctions and military strikes, Iran’s oil exports soared in the first half of 2025, reaching nearly 1.7 million barrels per day in June, totalling over $3.6 billion in revenue, according to Tankertrackers. This marks a 30–37% increase compared to January 2025 levels, outpacing export figures at the end of the Biden administration. The rise challenges U.S. goals to curb Tehran’s oil revenue, which funds domestic repression and regional threats. Treasury Secretary Scott Bessent’s pledge to cut exports to near zero remains unmet.

Iran slams US sanctions on Indian firms as ‘modern economic imperialism’

Iran's Embassy in India condemned U.S. tariffs on Indian imports and sanctions on six Indian firms trading Iranian petrochemicals, calling it “modern economic imperialism.” Tehran accused Washington of weaponising sanctions to pressure independent nations like Iran and India. The embassy urged resistance to such policies, framing it as support for a stronger Global South. Iran's foreign ministry also called the sanctions a “malicious act” against its economic development.

Iran insists on US compensation before talks

Iran reaffirmed its commitment to uranium enrichment and ruled out resuming nuclear talks unless the U.S. compensates for damages from its recent conflict with Israel, Foreign Minister Abbas Araghchi told the Financial Times. Araghchi cited deep mistrust of the Trump administration and strong domestic opposition to negotiations. He reiterated Iran’s stance on a peaceful nuclear program, referencing a longstanding fatwa banning nuclear weapons, and confirmed message exchanges with U.S. envoy Steve Witkoff during and after the conflict.

Russia voices concern over threat of new strikes on Iran's nuclear facilities

Following US and Israeli airstrikes on Iranian nuclear facilities, Russia called for renewed dialogue to resolve the nuclear issue. Foreign ministry spokeswoman Maria Zakharova expressed concern over further strikes and stressed that a deal with Tehran remains possible through diplomacy. The strikes came during a 12-day Iran-Israel conflict sparked by Israel’s June 13 aerial attack. The violence, which caused casualties on both sides, ended with a ceasefire on June 24. The US joined the conflict, targeting Iranian nuclear sites on June 22.