Energy agencies warn: the closure of Hormuz will trigger the most severe energy supply crisis in decades

Wood Mackenzie pointed out in its new report that the prolonged closure of the Strait of Hormuz would pose the biggest threat to the global energy market in decades. Currently, daily production of crude oil and condensate in the Gulf region has decreased by over 11 million barrels. Meanwhile, more than 80 million tons of liquefied natural gas supply cannot enter the global market each year. In its latest report, the organization presents three different scenarios: rapid and peaceful resolution, summer de-escalation, and long-term disruption. Each scenario provides different timelines for ending the conflict and reopening the strait, and evaluates the potential impacts on oil and gas supply, prices, energy demand, and the broader global economy. The company's chief economist, Peter Martin, stated, "The Strait of Hormuz is the most critical chokepoint in the global energy market, and if the strait remains closed for an extended period, the impact will be more than just an energy crisis. The longer it continues, the greater the impact on energy prices, industrial activity, trade flows, and global economic growth."