Oil traders warn that renewed tensions in the Strait of Hormuz could pose a major risk to global energy markets, as emergency stockpiles that previously helped stabilize supplies are running low. The breakdown of a US-Iran ceasefire has again disrupted shipping through the strait, which carries about one-fifth of the world’s oil supply.
Oil prices have rebounded as market concerns grow, with Brent crude rising above $87 per barrel after falling sharply following the ceasefire announcement. Traders say the market has lost much of its previous supply cushion, while disruptions to Russian fuel exports and tighter refined fuel markets are adding further pressure.
Although some Gulf producers have redirected shipments through alternative routes, countries such as Iraq and Kuwait remain heavily dependent on the Strait of Hormuz. The Financial Times reports that analysts warn a prolonged closure could create a significant supply shortage, particularly as emergency reserves are depleted, and global inventories remain limited.
