Rystad Energy warns: If the Strait of Hormuz is blocked, global supply will drop by 10%

⑴ Jorge León, Senior Vice President and Head of Geopolitical Analysis at Rystad Energy, warned that although alternative Middle Eastern facilities can be used to bypass the Strait of Hormuz for transportation, the net effect would still be equivalent to an effective reduction of 8 to 10 million barrels per day in crude oil supply, accounting for about 8% to 10% of the global total demand of 100 million barrels per day. ⑵ León pointed out that if the risk of disruption to the Strait persists, countries with strategic petroleum reserves may take action to release their inventories. Unless there are rapid signs of easing, oil prices are expected to see a significant increase early this week.