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Oil prices could get high enough to force a COVID-level lockdown

Larysa Harapyn
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⚡ Quantum Brief
A Strait of Hormuz shutdown has triggered a severe oil supply crisis, with global prices surging to levels that could force economy-wide lockdowns akin to COVID-19 restrictions. The International Energy Agency’s emergency reserve release fails to offset the disruption, as Iran-related conflicts persist, leaving markets structurally undersupplied. Energy analyst Rory Johnston warns that even an immediate conflict resolution wouldn’t stabilize markets quickly, with prolonged price volatility expected due to logistical bottlenecks. Oil-dependent economies face potential demand destruction as prices reach unsustainable thresholds, threatening industrial output and transportation sectors. The crisis underscores geopolitical fragility in energy supply chains, with no short-term solutions to prevent economic contraction if prices remain elevated.
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Rory Johnston: IEA oil reserve release still not enough to offset Strait of Hormuz shut downYou can save this article by registering for free here. Or sign-in if you have an account.Rory Johnston, founder Commodity Context, talks to Financial Post’s Larysa Harapyn about how long it could take oil markets to heal even if Iran conflict ended tomorrow.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.

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Source: Financial Post

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