The supply of oil, petroleum products, and liquefied natural gas (LNG) through the Strait of Hormuz has reportedly fallen to just 4% of normal levels.
This assessment comes from Goldman Sachs, one of the leading U.S. investment banks.
According to the bank’s analysts, if the blockade of the strait continues, Iran’s limited export capacity and insufficient storage facilities could further deepen supply disruptions. At the same time, stalled U.S.–Iran negotiations and ongoing tensions are creating additional strain on energy flows.
According to United Nations data, since the start of the U.S.–Israel–Iran conflict, vessel transits through the Strait of Hormuz have declined by 95.3% due to restrictions.
The current situation has had a severe impact on global oil markets. The price of Brent crude has risen to its highest level since mid-2022. At present, Brent is trading at $121, while WTI (Light crude) stands at $108.
From a pre-conflict level of around $70, Brent has increased by nearly 70% over a nine-week period, while WTI has recorded a rise of over 66%.
The price surge is being driven by both sides’ strong rhetoric and expectations of continued regional instability.
Experts note that the United Arab Emirates’ post-OPEC output increase plan is insufficient to offset short-term supply pressures, with effects expected to emerge more clearly in the medium to long term.
Meanwhile, tensions in the strategically vital Strait of Hormuz for oil and LNG transport continue to raise concerns over energy security across the Middle East since the beginning of the conflict.
