Why the Global Oil System Cannot Replace Hormuz Flows ...Middle East

As the world braces for a potential “Battle of Hormuz” to reopen the world’s most important energy chokepoint, governments and energy markets are scrambling to answer a daunting question: What happens if the Strait of Hormuz stays closed for weeks or even months? The narrow waterway between Iran and Oman is the most critical chokepoint in the global energy system. Roughly one-fifth of the world’s oil supply moves through it every day, along with enormous volumes of natural gas and petrochemical feedstocks. In practical terms,…

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