economy
Energy crisis will not end even after the opening of Hormuz
LONDON – Although the blockade of the Strait of Hormuz could last until 2027, the energy crisis will not simply end even after its reopening, according to a report released today by S&P Global Energy.
TL;DR
- The blockade of the Strait of Hormuz could last until 2027.
- The energy crisis will not end immediately after the Strait of Hormuz reopens.
- Restoring production after reopening could take at least seven months, assuming no permanent damage to infrastructure and smooth supply chains.
- Recovery could take longer if there is significant damage to ports, pipelines, or loading terminals.
- Consumers could face higher fuel and energy prices through 2026 and into 2027.
- Iran began blocking ships in the Strait of Hormuz following US and Israeli airstrikes on February 28.
- The US began blocking all ships going to or from Iranian ports on April 13.