economy

March 1, 2026

$100 oil? Prolonged Hormuz closure could spark a 1970s-style energy shock

Energy analysts are bracing for a possible oil supply shock after U.S. strikes on Iran reignited fears of disruptions in the Strait of Hormuz.

$100 oil? Prolonged Hormuz closure could spark a 1970s-style energy shock

TL;DR

  • U.S. strikes on Iran have reignited fears of a potential oil supply shock and disruption of flows through the Strait of Hormuz.
  • The Strait of Hormuz is a critical transit route for global crude, with approximately 13 million barrels per day flowing through it.
  • Iran has previously threatened to block the Strait in response to attacks.
  • A prolonged closure could lead to severe implications for global oil markets, potentially driving prices into the triple digits and LNG prices to record highs.
  • Worst-case scenarios include attacks on regional infrastructure or a complete closure of the Strait, which could draw in multiple Gulf countries.
  • The duration and scope of any disruption will determine the extent of oil and LNG price spikes.

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