Hormuz Oil Shock Spreads West as Strait Remains Closed

A senior energy portfolio manager warns the Strait of Hormuz closure due to Iran conflict will trigger oil disruptions surpassing COVID-era shortages, with immediate global supply chain impacts expected. The prolonged blockade has forced oil companies to deplete strategic buffer reserves at an accelerated rate, leaving minimal safety stockpiles to mitigate further shocks. Physical oil shortages are now projected within weeks as refineries and distributors exhaust remaining inventories, risking fuel rationing in dependent economies. Analysts compare the crisis to historical supply shocks but note this disruption combines geopolitical conflict with logistical chokepoints, amplifying volatility beyond past events. Markets face cascading effects as Western nations scramble for alternative routes, with spot prices poised for record spikes amid shrinking availability and surging demand.