Hormuz Disruption Tests Markets as Reserves Prove Temporary

Iran’s Strait of Hormuz closure has sent oil prices above $100 as ships avoid the chokepoint. The IEA’s 400 million-barrel emergency release—largest in its history—offers only a temporary buffer, since it would cover roughly four days of global demand or about 20 days of Hormuz throughput. With shipments through Hormuz down to under 10% of pre-war levels and threats to energy infrastructure like Kharg Island, the crisis could deepen if supply remains disrupted.