By: Prof. Samuel Lartey
In the vast architecture of global trade, most flows are invisible, dispersed, and resilient. Yet one narrow corridor continues to command global attention. The Strait of Hormuz carries roughly 20 percent of the world’s oil supply, estimated at 18-20 million barrels per day. Its influence, however, stretches far beyond that figure. The issue is not the percentage. The issue is what happens if that flow is interrupted.
A Narrow Passage with Global Consequences
The Strait of Hormuz is the most critical chokepoint in the global energy system. Nearly all oil exports from the Persian Gulf must pass through this route. Major producers such as Saudi Arabia, Iraq, Kuwait and Qatar depend on it for access to global markets.
Unlike other oil transport systems that are spread across oceans and pipelines, this route is highly concentrated and exposed. There are very few viable alternatives that can handle the same volume if disruption occurs.
In March 2026, rising tensions involving Iran triggered a sharp reaction in global markets. Brent crude prices rose by about 9 percent in a single day. European gas prices surged by more than 20 percent. Shipping routes were disrupted, forcing costly rerouting and delays. Even the threat of instability proved enough to shake global confidence.
Why the Remaining 80 Percent Feels Different
The rest of the world’s oil supply moves through multiple routes across the Atlantic, Pacific, and Indian Oceans, supported by extensive pipeline systems. This network is flexible and diversified. It is difficult to disrupt all of it at once.
The Strait of Hormuz is different. It is a single point through which a large share of global energy must pass. If it is blocked, the impact is immediate and widespread. Analysts warn that even partial disruption could push oil prices above 100 dollars per barrel, fueling inflation and slowing economic growth worldwide.
Africa and the Transmission of Global Shocks
For many African countries, the implications are direct and immediate. Most economies on the continent rely heavily on imported refined petroleum products. As a result, global price increases quickly translate into higher domestic costs.
Fuel prices rise. Transport becomes more expensive. Food prices increase as logistics costs climb. These effects ripple through households and businesses alike.
Ghana’s Exposure in a Volatile System
For Ghana, the situation reflects a broader paradox seen in many emerging economies. Ghana produces crude oil, yet it still depends significantly on imported refined fuel. Fuel imports accounted for approximately 29 percent of total imports in 2025. This means that global price shocks are transmitted directly into the domestic economy.
When oil prices rise, transport fares increase almost immediately. Food prices follow due to higher distribution costs. Electricity tariffs may also rise, placing additional pressure on households and businesses.
At the same time, higher fuel import bills increase demand for foreign exchange. This places pressure on the Ghanaian cedi and can widen fiscal deficits. While higher oil prices may boost export revenues, the cost of imports often rises faster, creating a net strain on the economy.
A Wider Economic Chain Reaction
Oil is deeply embedded in modern economic systems. It affects fertiliser production, manufacturing, aviation, and power generation. A disruption in the Strait of Hormuz, therefore, triggers a chain reaction across multiple sectors.
Food production costs increase due to higher fertiliser prices. Air travel becomes more expensive. Supply chains slow down as transport costs rise. In 2026, disruptions linked to tensions in the region contributed to energy shortages, market volatility, and logistical delays across several economies.
A Fragile Artery of Globalisation
The global economy is vast and interconnected, yet it remains dependent on a few critical routes. The Strait of Hormuz represents one of the most fragile among them. Its importance lies not just in the volume it carries, but in its lack of substitutes, its geopolitical sensitivity, and the speed at which disruptions can spread across the world.
Conclusion
The world’s focus on the Strait of Hormuz reflects a deeper reality about globalisation. A single narrow passage can influence inflation, trade, and economic stability across continents.
For emerging economies such as Ghana, the lesson is clear. Energy security is not only about how much a country produces. It is also about how securely that energy can move across the world. In a system built on interdependence, even the smallest passage can carry the greatest risk.
