Economic Expert: Strait of Hormuz Closure Could Drive Oil Prices to $200 Per Barrel

According to the International Desk of Webangah News Agency, Ayman Omar, an economic affairs expert, emphasized that the Strait of Hormuz is among the critical waterways with no international equivalent. This category includes six key passages: the Strait of Malacca, the Suez Canal, the Strait of Hormuz, the Panama Canal, the Bab-el-Mandeb Strait, and the Bosphorus Strait. Disruptions to these passages would not only incur economic costs but also immediately paralyze half of global maritime trade.

Omar added, “We are facing a new 21st-century equation: whoever controls the waterway controls the world.”

Addressing the short-term and long-term consequences of a Strait of Hormuz closure on energy prices, Ayman Omar stated that the world would witness a severe shock to energy supply in the immediate period. He noted that this strait serves as a vital artery for approximately 21% of global oil. Omar anticipates that Brent crude oil prices will surpass $100 per barrel, and if the closure persists for more than two weeks, prices could exceed $120.

He further elaborated that a prolonged closure of the Strait of Hormuz would likely lead to oil prices exceeding $200 per barrel.