Analyst: Restoring Operations in the Strait of Hormuz Could Take 1 to 3 Months

Deep News
Mar 16

According to data from the American Automobile Association (AAA), the average price of gasoline in the United States reached $3.70 per gallon yesterday, marking a 24% increase since the outbreak of the Iran conflict on February 28th. U.S. Secretary of Energy Chris Wright acknowledged the economic impact of the conflict but stated that enduring "short-term pain" is preferable to "allowing Iran to possess nuclear weapons." However, Homayoun Falakshahi, Chief Crude Oil Research Analyst at Kpler, indicated that even if the war ended today, restoring full operations to the Strait of Hormuz—a passage for 20% of the world's oil—could take between one to three months. Significant time is required to clear the hundreds of vessels awaiting safe passage, allow major oil producers to repair damaged facilities, ramp up production, and resume the flow of oil.

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