
Deutsche Bank states that a full closure of the Strait of Hormuz cutting global oil supply by 20% could push crude prices above $100 per barrel, underscoring heightened energy market risks.
Following threats from an adviser to the Iranian Revolutionary Guard to block the Strait of Hormuz, Deutsche Bank stated that a complete shutdown causing a 20% reduction in global oil supply could drive oil prices above $100 per barrel, according to Jinshi. The strait handles roughly one-fifth of global oil transport, making it a critical chokepoint. Earlier analyst projections suggested prices could surge as high as $200 per barrel if the disruption persists, highlighting the severe impact a sustained blockage would have on global energy markets.