Oil could top USD 100 as Strait of Hormuz closure halts flows

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Oil prices could exceed USD 100 per barrel if tanker traffic through the Strait of Hormuz is not swiftly restored, as the waterway's closure threatens to disrupt 15 per cent of global oil supply and 20 per cent of global LNG supply, consultancy Wood Mackenzie said.

Following US and Israeli attacks on Iranian government, military and nuclear facilities, Iran warned shipping away from the strait and insurers withdrew coverage, effectively halting tanker movements.

The disruption, Wood Mackenzie said, creates a dual supply shock. Current exports through the strait are suspended, while additional OPEC+ volumes and most of OPEC's spare capacity - typically used to balance the global oil market - are inaccessible as long as the waterway remains closed.

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