Geopolitical tensions in the Strait of Hormuz are projected to sustain high oil prices until at least 2027, according to analysts. The narrow waterway, through which about 20% of the world's oil passes, has faced repeated disruptions due to regional conflicts and naval incidents.
"The risk premium on oil is unlikely to dissipate quickly," said a senior energy analyst.
Supply chain experts warn that any prolonged closure could trigger a global energy crisis, reminiscent of the 1970s oil shocks. Major importers, including Japan and India, are reportedly diversifying supply sources, but alternatives remain limited.
The International Energy Agency has urged nations to release strategic reserves if needed, while OPEC+ considers output adjustments to stabilize markets. However, with demand rebounding and spare capacity shrinking, prices are expected to remain above $100 per barrel for the foreseeable future.