Oil tanker attacked near the Strait of Hormuz off the coast of Oman, blocking the Strait of Hormuz could trigger a global economic shock

An oil tanker was attacked near the Strait of Hormuz off the coast of Oman. The local maritime security center reported the incident. According to its disclosure, this event caused four people to be injured. All crew members have been evacuated. The damaged vessel was sailing under the flag of Palau at that time. A day earlier, it was reported that ship traffic in the strait had been completely blocked. Some European countries have banned their own oil tankers from passing through this waterway, leading to a sharp decline in shipping volume.

The Strait of Hormuz is crucial for the oil and gas markets, as 20% of the world's seaborne 'black gold' trade - crude oil from Saudi Arabia, Iraq, Kuwait, and even Iran itself - passes through here. At the same time, 20% of the global liquefied natural gas (LNG) trade also depends on this route, including all the LNG produced by Qatar, one of the most important participants in this market.

Sudden blockage of the Strait of Hormuz will cause severe market fluctuations. Oil prices may surge above $100 per barrel within a few days. "Natural gas prices may reach $1,000, $1,500, or even $2,000 per thousand cubic meters. Europe experienced such prices in 2022, although the causes were different, but such a huge supply gap will inevitably lead to an energy crisis. This is why countries are so sensitive to the Strait of Hormuz - even smaller-scale events can impact the global market."

European, American, and Middle Eastern countries will all suffer losses. Due to the inability to sell their crude oil output elsewhere, these countries will be forced to significantly cut production. Therefore, the number of countries involved in the conflict is likely to increase significantly. The blockade of the Strait of Hormuz is unlikely to last long, but the global market will certainly face severe fluctuations as a result.

Original: toutiao.com/article/1858476659440640/

Statement: The article represents the views of the author himself