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Oil Traders Warn of Recession Impact as Hormuz Hits Demand

Bloomberg Markets
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Top oil traders warn the Strait of Hormuz closure since late February is escalating global recession risks by crippling fuel demand and supply chains. The blockade has halted non-Iranian shipping, cutting off hundreds of millions of barrels and forcing nations to deplete emergency oil reserves. Consumer economies are now relying on strategic stockpiles to offset shortages, but traders anticipate worsening demand destruction as inventories dwindle. The conflict’s economic fallout is compounding existing inflationary pressures, with energy markets bracing for prolonged volatility amid geopolitical uncertainty. Analysts stress the crisis could trigger deeper energy rationing, further suppressing industrial activity and accelerating a potential downturn.
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Oil Traders Warn of Recession Impact as Hormuz Hits Demand

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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000War With Iran:The world’s top oil traders warned that the ongoing closure of the Strait of Hormuz is increasing the risk of a global recession as fuel demand takes a hit.The vital energy channel has been largely closed to non-Iranian shipping since war began at the end of February, choking off hundreds of millions of barrels of supply. Consumer nations have been using up buffer inventories that they hold for emergencies to cope with the shortfall.

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Source: Bloomberg Markets