Key facts
- Oil flows through the Strait of Hormuz may not normalize until the end of the year.
- HSBC predicts normalization by late July and prewar levels by end-September.
- Delays are due to mine clearance, insurance, storage drawdowns, and restarting operations.
- European Central Bank Governing Council member Jose Luis Escriva warned that complications over energy supplies are likely to persist.
Jeff Currie of Carlyle has stated that oil flows through the Strait of Hormuz are unlikely to normalize until the end of the year. This outlook contrasts with HSBC's prediction that oil traffic through the Strait of Hormuz will not normalize until late July and may not reach prewar levels until the end of September. The delays are attributed to ongoing mine clearance operations, insurance issues for vessels, drawdowns of existing oil storage, and the process of restarting operations. European Central Bank Governing Council member Jose Luis Escriva warned that complications regarding energy supplies are expected to continue, despite an agreement to re-open the Strait of Hormuz.