The Middle East as an Energy Supplier

The Middle East is a significant energy supplier globally. The countries possess large reserves and production capacities, especially in petroleum and natural gas, making the region highly relevant for global pricing developments.

• Crude Oil: The Middle East accounts for around 25 percent of global oil production. Saudi Arabia alone contributes approximately 9 percent to global production.
   
• LNG (Liquefied Natural Gas): The region produces around 25 percent of global LNG. Qatar alone accounts for about 19 percent of the world’s LNG.
   
• Fuels and Fertilizers: Approximately 15 percent of global exports of refined petroleum products (including middle distillates) come from the Middle East. Fertilizer production also heavily depends on natural gas production.

Strategic Trade Routes: Hormuz and the Red Sea

Through the Strait of Hormuz, central streams of global trade and energy supplies pass:

• 11 percent of global trade by sea
• 20 percent of global consumption of crude oil and petroleum products or about 25 percent of global oil trade by sea. Alone, 38 percent of Saudi Arabian oil is transported through the Strait of Hormuz.
• 10 percent of global gasoline trade, 20 percent of global kerosene trade
• 20 percent of global LNG trade
• About one-third of global fertilizer trade
• Around 144 ships per day, approximately 53 of which are tankers, and about 24 are container ships

Although there are two bypass pipelines (Saudi Arabia’s East-West pipeline and the UAE pipeline to Fujairah), their capacities suffice for only a small fraction of the approximately 20 million barrels of oil per day transported through the Strait of Hormuz.

For LNG exports, alternatives are limited—primarily from Qatar, with no alternatives to sea transport through the Strait of Hormuz.

LNG and Crude Oil Transport through the Strait of Hormuz to Target Regions in Q1 2025

Another highly relevant axis of global trade, particularly for goods transit to and from Europe, runs along the Red Sea (Bab al-Mandab / Suez Canal)—despite no notable disturbances resulting from the Iran conflict to date:

• 12 percent of global maritime trade
• 30 percent of global container traffic

Gulf Region as a Logistic Hub for Air Freight and Passage

The region is a strategic hub for the logistics industry: 

• Approximately 65 percent of air freight in the Middle East passes through hubs in Doha and Dubai, predominantly as transit freight between Europe and Asia. 
   
• International logistics companies utilize Gulf hubs for deliveries to the Middle East, Africa, and South Asia. 
   
• The region is partially used for overflight air freight and passage. Airspace closures necessitate altered routes, increasing costs. For EU airlines, the northern route is excluded due to Russian airspace restrictions. This applies equally to flights originating in China, Japan, and other countries in the region.
   
• Air freight handles small quantities (around 1 to 2 percent in weight), yet it represents about 35 percent of global goods value, mainly high-tech and pharmaceutical products. The average value of air freight cargo is approximately €150,000 per ton.