Markets

The US energy sector reached a historic inflection point during the week of Apr. 13–17, as the

As the Middle East conflict restricts approximately 20% of global crude and LNG flows, Asian refiners—who receive 83% of shipments passing through the Strait of Hormuz—are aggressively redrawing the global trade map.

The closure of the Strait of Hormuz has evolved beyond a crude oil disruption into the most severe petrochemical (PC) supply shock in history.

Chinese and Indian refiners are rapidly pivoting toward previously sanctioned Iranian, Russian, and Venezuelan crude as US-led diplomatic waivers and a fragile ceasefire in the Mideast reorganize global energy trade.

The closure of the Strait of Hormuz has forced a dramatic restructuring of energy security in East Asia.

With the Strait of Hormuz largely impassable, the European Union is pivoting toward emergency measures.

Since the onset of the US-Iran conflict on Feb. 28, the Strait of Hormuz has functioned as a restricted corridor, primarily serving Iranian interests.

The near-total closure of the Strait of Hormuz following the US-Israeli war with Iran (beginning Feb. 28) has triggered an unprecedented energy crisis across Asia, which normally receives 83% of all oil and LNG shipments transiting the chokepoint.

The widening of the Brent-WTI spread to an 11-year high of $13–$15/b as of late Mar. has fundamentally restructured global energy competitiveness.

The global energy market is currently navigating a multidimensional disruption as escalating conflict in the Middle East chokes critical export arteries.