World faces largest oil supply shock ever as Strait of Hormuz shuts amid West Asia war

Energy experts note that the current disruption alone is roughly equal to the combined supply losses from the five major crises listed above, highlighting the unprecedented scale of the shock.

• Strait of Hormuz closure disrupts 20 million barrels of oil daily
• Oil prices surge past $110, Asian stock markets slump sharply
• Kospi and Nikkei indexes plunge, tech stocks lead sell-off

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The ongoing war in West Asia has triggered what analysts describe as the largest oil supply shock in modern history, after the effective closure of the Strait of Hormuz disrupted nearly 20 million barrels of oil per day.

In a post on X, The Kobeissi Letter, an industry leading commentary on the global capital markets said that the strategic waterway-one of the world's most critical energy chokepoints-handles a significant portion of global crude shipments. Its disruption has sent shockwaves through energy markets and pushed oil prices sharply higher.

BREAKING: The world is now experiencing its largest oil supply shock in history, losing nearly 20 million barrels of oil supply per day. Top oil supply shocks: 1. Hormuz Closure (NOW): -20 million b/d 2. Iranian Revolution (1978): -5.5 million b/d 3. Yom Kippur War (1973): -4.5…

— The Kobeissi Letter (@KobeissiLetter) March 9, 2026

According to energy market comparisons, the current supply disruption is far larger than previous historic shocks.

Major global oil supply shocks in history include:

Hormuz closure (current crisis) - about 20 million barrels per day disrupted

Iranian Revolution (1978) - 5.5 million b/d

Yom Kippur War (1973) - 4.5 million b/d

Iraq's invasion of Kuwait (1990) - 4.3 million b/d

Iran-Iraq War (1980) - 4.0 million b/d

Russian invasion of Ukraine (2022) - 2.0 million b/d

Energy experts note that the current disruption alone is roughly equal to the combined supply losses from the five major crises listed above, highlighting the unprecedented scale of the shock.

Meanwhile, Asian stock markets slumped sharply on Monday as oil prices surged past $110 per barrel for the first time since 2022, intensifying fears about the economic fallout from the escalating West Asia conflict.

South Korea's Kospi index plunged more than 8%, triggering its second circuit breaker in four trading sessions and forcing a 20-minute halt in trading at 10:31 a.m. local time.

Major technology stocks led the sell-off. Samsung Electronics dropped more than 10%, while chipmaker SK Hynix fell 11.6%.

The benchmark had already triggered a circuit breaker last week after plunging more than 12% in a single day, marking its steepest decline on record.

Japan's Nikkei 225 also tumbled 6.48%, slipping below the 53,000 level for the first time since early February, while the broader TOPIX index fell 5.8%.

Among major decliners was SoftBank Group, which slid more than 11%. Semiconductor-related stocks were also under heavy pressure, with Advantest falling over 10% and Lasertec dropping more than 9%.