Walter BloombergGeopolitics

FED WARNS OF ENERGY HIT IF HORMUZ STAYS SHUT Lorie Logan warned that the world may have to cut oil and gas use if shipping through the Stra…

FED WARNS OF ENERGY HIT IF HORMUZ STAYS SHUT Lorie Logan warned that the world may have to cut oil and gas use if shipping through the Strait of Hormuz does not return to normal soon. The conflict involving Iran, the U.S. and Israel has disrupted traffic through the key energy route, driving up oil, food and fertilizer prices. Before the war, about 20% of global oil and LNG supplies passed through the strait. Logan said global energy demand may need to fall if supplies remain tight, especially as U.S. oil production growth is expected to stay limited. She noted that global oil supply has already dropped by about 13 million barrels a day since the war began, with inventories helping to fill the gap for now. “If the molecules aren’t available, the world can’t consume them,” Logan said.
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