Kinshasa, March 2nd, 2026 (CPA).– The local processing of oil in the Democratic Republic of Congo (DRC) is a necessity in order to reduce the economic impact of a possible closure of the Strait of Hormuz in Iran, the Minister in charge of Foreign Trade stated on Monday during a policy forum held in Kinshasa. “From a structural standpoint, the processing of Congolese oil is a necessity because, although the DRC cannot prevent the closure of the Strait of Hormuz, it can reduce its economic impact locally through the revival of SOCIR (Congolese Refining Industries Company), hence the need for such transformation,” declared Julien Paluku, Minister of Foreign Trade. In this regard, among the precautionary measures on a cyclical level, he stressed the urgency of building and managing strategic reserves by increasing the storage capacities of the Petroleum Companies Services (SEP Congo) and the National Hydrocarbons Company of Congo (SONAHYDROC). He also advocated for the establishment of strategic reserves of staple foods (maize, rice) to stabilize prices on the domestic market when import costs soar. “To cope with these types of inevitable external shocks, the DRC has opted for economic diversification and alternative supply routes. If the Strait of Hormuz is blocked, global traffic will shift massively towards the Atlantic, hence the strategic importance of the Banana deep-water port and the Lobito Corridor, two mega-projects currently under implementation in the country,” added Julien Paluku.
Strait of Hormuz, the lung of the global economy
Minister Paluku specified that the closure of this strategic chokepoint due to tensions between Iran and the United States would not merely constitute a regional incident, but a systemic earthquake, as the Strait of Hormuz is often described as the “lung of the global economy.” According to him, this strait is the most important maritime passage in the world for energy trade. Approximately 20 to 25 percent of global oil consumption (over 20 million barrels per day) and one-third of the world’s liquefied natural gas (LNG) transit through it. “It is thus considered the sole outlet for the massive exports of Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Qatar. More than 75 percent of the oil transiting through the strait is destined for Asian markets (China, Japan, India, South Korea), making Hormuz the umbilical cord of the world’s factories,” he explained.
“Although the DRC is geographically distant from the Persian Gulf, its economy is highly dependent on global flows. A closure of the Strait of Hormuz would trigger a shockwave resulting in: a surge in the cost of living (imported inflation); and an impact on the mining sector, which consumes enormous quantities of fuel to operate machinery,” Minister Julien Paluku stated during the policy forum. Regarding major risks to global trade, the minister revealed that in the event of a total blockade, the price of Brent crude could exceed 100 US dollars per barrel within a few days. This would lead, he added, to a sharp rise in prices and transport costs, fueling global inflation that would be difficult for central banks to contain. Furthermore, the Congolese minister affirmed that even without a total closure, the mere risk of missile and drone attacks would drive up maritime insurance premiums. Some shipowners might refuse to navigate in the area, thereby reducing available transport supply. It should be noted that the Minister of Foreign Trade spoke during this forum on the potential economic impact arising from the closure of the Strait of Hormuz in Iran, following military escalations in the Middle East.