general
How countries are cutting energy use after Strait of Hormuz closure
With 20% of the world’s oil unable to pass the Strait of Hormuz and crude near $100 a barrel, governments worldwide are using rationing, work-from-home measures and operational limits to cut energy demand.
Mar 25th 2026 · World
Insights
- The near-total closure of the Strait of Hormuz has removed about 20% of global oil supply.
- Crude prices approached $100 per barrel and 400 million barrels of emergency reserves have been released onto the market.
- The IEA calls this the largest oil supply disruption in history and recommends demand cuts focused on road transport and air travel.
- Countries have introduced fuel rationing and odd-even schemes, including Sri Lanka limiting private motorists to 15 liters per week and Slovenia capping private purchases at 50 liters weekly.
- Governments are promoting remote work, shorter public sector weeks, earlier business closing times and temperature limits in public buildings to reduce energy use.
- Some states are banning exports and diverting LPG to households, disrupting restaurants and logistics, while the EU response is fragmented and Germany rules out returning to Russian gas.
Sources
- Oil supply shock hardens energy transition resolve – for some www.france24.com
- New IEA report highlights options to ease oil price pressures on consumers in response to Middle East supply disruptions www.iea.org
- How countries are tackling the global energy crisis www.dw.com
- The other Strait of Hormuz shock www.ft.com