Even if the Strait of Hormuz opens, experts say it it could still take a long time for oil flows to return to normal

1 hour ago

Associated Press,

“Many shipowners will remain extremely cautious, fearing a sudden resumption of hostilities,” Alex Kuptsikevich, chief market analyst at FxPro, said in a Wednesday note.

He stressed that future escalation cannot be ruled out, “given the significant differences in the parties’ positions.” It could take months for the Strait of Hormuz to resume operations at full capacity, he said, which will continue to keep oil prices high.

Karin Ström, vice president of logistics and supply chain work at Proxima, reiterated that the “fragile political landscape has the potential to change within a matter of hours” and that many vessels may not choose to return immediately, as they seek “greater reassurances about the safety of their cargo and crews.”