The closing of the Strait of Hormuz has begun an unprecedented moment in time for the oil market. The crucial artery supply accounts for 1/3rd of the seaborne oil market, and its closing has and will continue impacting the oil markets around the world. On April 10, Martijn Rats Managing Director, Equity Research at Morgan Stanley, hosted a webinar for AmCham members to discuss the impact on Asia, the United States, and the Netherlands.
While the impacts of the closed strait will be felt globally, it will not stay closed forever. If there is a quick political resolution, the normal flow of oil will likely be restored at the end of 2026. Oil and gas industries will eventually stabilize; however, the Strait of Hormuz’s closure has opened up new conversations around bargaining power, strategic reserves, and long-term oil trading.
