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News 5 of 24

Strait of Hormuz Blocked, 20% Global Oil/Gas Flow Halted, Spot LNG Price Jumps 50% to $15/MMBtu

Intl. RelationsEconomySecurity & DefenceHIGH
Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
12 Mar 2026
~2 min
Source: Indian Express
Key Data:20% of world oil/gas flowSpot LNG > $15/MMBtuIndia oil reserve: 74 daysChina oil reserve: 100+ daysJapan oil reserve: 250+ daysEU import reserve: 90 days
Bodies:International Energy Agency (IEA)
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What This Article Covers

1.Iran's use of drones has successfully blocked the Strait of Hormuz, disrupting 20% of global oil and gas flow, flagged by the IEA as the largest-ever supply disruption.

2.While strategic oil reserves of major economies (China: 100 days, Japan: 250 days, India: 74 days) provide a buffer, LNG reserves are a greater immediate concern, with spot prices soaring above $15/MMBtu.

3.The conflict's trajectory is uncertain; a worst-case scenario is a protracted war beyond early April, continuing to disrupt shipping and energy flows, with implications for global inflation and security architecture.

The Big Picture
Prelims · HighMains · High

Iran's unconventional warfare has choked the Strait of Hormuz, blocking a fifth of global oil and gas flow and causing the 'largest supply disruption in oil market history'. While major economies have strategic oil stockpiles, the immediate crisis is in LNG supplies, with spot prices surging over 50% and European refilling hampered. This event tests global energy security and anti-drone warfare capabilities.

Exam Lens

Quick Exam Facts From News

Strait of Hormuz Traffic20% of world's oil and gas demand pre-war
Spot LNG Price SurgeAbove $15/MMBtu (50% increase in 2 weeks)
India's Strategic Oil Reserve74 days worth of consumption
China's Strategic Oil ReserveOver 100 days worth of consumption
Japan's Strategic Oil ReserveOver 250 days worth of consumption

1-Minute Revision

  • ›Strait of Hormuz Traffic: 20% of world's oil and gas demand pre-war
  • ›Spot LNG Price Surge: Above $15/MMBtu (50% increase in 2 weeks)
  • ›Target this Data: '20% of world's oil and gas' passed through Strait of Hormuz.
  • ›Target this Nodal Body: 'International Energy Agency (IEA)' flagged the disruption.
  • ›Target this Strategic Detail: India maintains '74 days' worth of strategic oil reserves.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which international organization, mentioned in the article, coordinates the release of oil from strategic reserves during major supply disruptions?

Q2Statement-basedHard

Consider the following statements regarding the energy security implications discussed in the article:

1. The International Energy Agency has termed the disruption due to the Iran war as the largest supply disruption in the history of the global oil market.

2. According to the expert, the position of strategic natural gas (LNG) reserves is of greater immediate concern than oil reserves for major economies.

3. India's strategic petroleum reserve is sufficient for over 250 days of consumption, which is higher than that of China and Japan.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the expert cited in the article, what is the approximate number of days of oil consumption covered by India's strategic petroleum reserves?

Q4Application/ImpactMedium

What is identified as a primary reason for the extreme volatility in oil prices despite the IEA's release from reserves, as per the expert's analysis?

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