The Strait of Hormuz showcases a global issue

The world is learning a painful lesson about the precarity of the energy supply — a supply that millions depend on.

The world breathed a sigh of relief Friday when Iranian Foreign Minister Abbas Araghchi announced the Strait of Hormuz is “completely open” for foreign vessels after a blockade which choked some parts of the world of a much-needed oil supply. The strait will remain open for the duration of the 10-day Israel-Lebanon ceasefire, agreed upon by the two countries Thursday.

But by the time the strait was declared open again, panic had already begun to set itn. International Energy Agency executive director Fatih Birol said Thursday that Europe had “maybe” six weeks of remaining jet fuel amid the blockade of the strait, triggered by conflict between Iran and the U.S.

“…(I)t is going to have major implications for the global economy. And the longer it goes, the worse it will be for the economic growth and inflation around the world,” Birol told the Associated Press.

Many countries maintain a strategic oil reserve — a nest egg to keep the country going in the event of hindered supply of imports. There is not room here for an exhaustive list, but to give examples: per Reuters, the U.S. has 415.4 million barrels’ worth in stock as of the end of February; Japan has 260 million barrels; France has 120 million; and the U.K. has 38 million barrels of crude and another 30 million in refined products. (Canada is not required by the IEA to have a stockpile, as it is a net oil exporter.)

It is shocking, then, to see how quickly a single transit lane for oil can quickly put entire continents into trouble. Yes, it’s only jet fuel and not the entire continent’s energy supply, but diminishing jet fuel supplies have cascading effects for Europe, hindering personal travel and any air-based shipping.

Some travellers, the AP reported, are already feeling the pinch as carriers increase ticket prices and additional fees; before the declaration that the strait was reopened, Dutch airline KLM planned to cut 160 flights to and from Amsterdam in May.

All this potential calamity over a strait which, in peacetime, only moves 20 per cent of the world’s oil supply.

There are many reasons for the world to pivot away from heavy reliance on fossil fuels — chief among them, it must be said, being that reliance’s contribution to climate change and its increasingly painful effects. But in addition, there is the newly evident need for nations to protect themselves from a crippling lack of energy by making sure there is homegrown capacity to produce what it needs — be that the ability to heat homes or jet fuel for planes used by its domestic carriers.

Canada does, thankfully, have some capacity on this front. On top of being a significant producer and exporter of oil, the countries crude oil refineries have produced refined products such as gasoline, jet fuel, asphalt, and diesel at steady rates since 2022, according to the Canada Energy Regulator. In 2025, the refineries consumed 1.6 million barrels per day, or about 90 per cent of their capacity.

For now, the IEA can breathe a little easier — there are 10 days, at least, for ships to come and go from the strait, delivering crucial fuel to countries which are, in at least some areas, beginning to run out.

However, the fact it took only a short-term blockade of a single transit lane to push some sectors to the point of precarity should demonstrate just how very much the world needs to find a new, more stable way to to obtain the resources it needs for the great machine of human civilization to keep running smoothly.