Hormuz Closure Could Push Oil to $200 per Barrel, Wood Mackenzie Warns
The consultancy said prolonged Gulf disruptions could keep global LNG markets tight and lift diesel and jet fuel prices toward $300 a barrel.
- Wood Mackenzie reported yesterday that Brent crude prices could approach US$200/bbl by end-2026 as global supply shortages persist and more than 11 million barrels per day of Gulf production remains curtailed.
- The Strait of Hormuz blockage has disrupted energy flows since late February, with Peter Martin, head of economics at Wood Mackenzie, warning that prolonged closure would become "more than an energy crisis."
- CEO John Christmann stated APA Corp has "significantly improved capital efficiency" while maintaining resilient production volumes in the U.S. Permian Basin and Egypt, positioning the company to benefit from elevated prices.
- The global economy could contract by 0.4% in 2026, marking the third recession this century, as energy-importing countries accelerate electrification to reduce dependence on oil and gas.
- LNG markets face prolonged disruption, with Wood Mackenzie analysts warning that some of the Gulf region's 85 Mtpa of supply could be permanently lost if recurring tensions sustain disruptions through end-2026.
13 Articles
13 Articles
North Bay Nipissing
Strait of Hormuz closure risks greatest global energy supply shock in decades, Wood Mackenzie warns
LONDON/HOUSTON/SINGAPORE, May 20, 2026 (GLOBE NEWSWIRE) -- A prolonged closure of the Strait of Hormuz poses the single greatest threat to global energy markets in decades, according to a new Horizons report from Wood Mackenzie, Strait Talking: Iran War Scenarios…
Indian Rupee remains near historic lows amid energy price shock, higher yields
The Indian Rupee (INR) continues to underperform against the US Dollar (USD) on Wednesday, trading close to its fresh all-time lows. The USD/INR pair holds onto gains near 97.00 as elevated oil prices due to fears of a prolonged closure of the Strait of Hormuz remain a key drag on the Indian Rupee. At press time, the WTI Oil price is marginally lower around $102.50, but is up over 50% since the onset of the war in the Middle East. Currencies fro…
Coverage Details
Bias Distribution
- 43% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
