Global oil prices continue to rise despite a handful of ships successfully transiting the Strait of Hormuz.
Indeed, the blockage has triggered supply disruptions that may take months to recover.
The strait, which is responsible for controlling the traffic of 20% of the world’s crude oil and liquefied natural gas, has been effectively closed despite occasional ship crossings.
Even if the authorities authorize the passage of several ships, the risks remain extreme. Missiles, drones and naval mines have turned the region into a war zone.
Insurance companies, unwilling to take on this responsibility, are refusing to insure trips, creating what experts describe as an “insurance-driven shutdown.”
Additionally, attacks on oil installations throughout the region have disrupted oil production in several locations, limiting the amount of oil that can be transported.
The destruction of oil infrastructure, caused largely by retaliation by Iran and its Gulf neighbors, has led to supply shortages that cannot be quickly remedied.
Consumers are already suffering the harmful consequences.
U.S. benchmark West Texas Intermediate crude hit $112 a barrel, its highest level since 2022.
As Trump has no clear exit plan, analysts warn that high prices could become the new normal in the near future.
